Nvidia CEO Jensen Huang pressed G20 countries on Wednesday to avoid writing regulations for AI that focus on "theoretical harms," and instead develop rules governing real-world problems connected to the technology.
Huang made the comment at a tech-focused G20 meeting in Chapel Hill, North Carolina, alongside U.S. Commerce Secretary Howard Lutnick. Anthropic's Tom Brown and OpenAI's Sam Altman are also scheduled to appear at the gathering on Wednesday.
Huang's message echoed those of the Trump administration and other American tech executives who spoke during the first part of Tuesday's meeting.
The executives want less regulation around the world for their rapidly growing businesses, or to shape the rules as they are written.
Federal government requirements could hurt the industry's profits if they slow the release of new models or prompt the companies to change how their products perform to address security concerns.
The U.S. is aiming to persuade G20 members at the gathering to avoid writing entirely new regulations for AI, and instead focus on writing rules for "novel" situations involving the technology, U.S. President Donald Trump's tech advisor, Michael Kratsios, said on Tuesday.
Jim Cramer went on air with a blunt message for Jensen Huang and a specific dollar figure that would force Nvidia to rethink how it spends its record-breaking cash pile.
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On the September 1, 2026, episode of Mad Money, Jim Cramer laid out an unusually specific piece of unsolicited advice for Nvidia (NASDAQ:NVDA | NVDA Price Prediction): quintuple the existing share repurchase authorization and use it to buy back roughly a tenth of the company. To be clear, this is Cramer’s opinion, and Nvidia has announced nothing of the sort. His comments do not reflect CNBC’s view and are not a specific inducement to invest.
What Cramer Actually Proposed Cramer’s pitch borrows from the Apple (NASDAQ:AAPL) playbook: “I think they should do like Apple, which was also valued incorrectly, and repurchase a spectacular amount of stock. I quintuple, quintuple, the buyback authorization. Announced a monster half-trillion dollar buyback. Because there’s no better investment for Nvidia than Nvidia.”
He went further, adding that he would “contemplate quintuple the buyback authorization, quintuple it, announce a monster half trillion dollar buyback, repurchase a tenth of the company in a fairly aggressive fashion every day.”
For scale, Nvidia disclosed in its Q2 FY2027 release that it has approximately $99.0 billion remaining under its current authorization. The company carries a market capitalization in the multi-trillion-dollar range. As dated background from the May 20, 2026, Mad Money episode, Cramer had noted that Nvidia bought back nearly $20 billion of stock in that quarter and announced a new $80 billion program with close to $40 billion still on the prior one. That May characterization is not a statement of Nvidia’s current authorization status, but it frames what Cramer means by “quintuple.”
Why He Says the Market Has It Wrong Cramer described the proposal as a market critique, not a company critique. “My plan is not an indictment of the company. It’s an indictment of the market. Wall Street’s not valuing Nvidia correctly,” he said. He pointed to the multiple: “I think it’s absurd that Nvidia has an amazing order book and huge profitability, yet it trades at just 23 times this year’s earnings estimate at a much lower P/E and then sold out years.” The 23x figure is Cramer’s characterization.
He also argued the stock has lagged. “From the close on October 28th to today, Nvidia stock is up 8.2%, the S&P 500 is up 10.7%. Yes, Nvidia’s underperformed,” he said, calling it a company that has “dramatically ratcheted up revenue expectations” while the stock “has barely moved.” Those performance numbers are his citation. Independent price data shows shares at $217.44 as of the September 1, 2026, close, with a one-month gain of 8.3% and a year-to-date gain of 16.6%.
Can Nvidia Afford It Without Starving Investment? Cramer’s answer to the affordability objection was plain: “I think they could afford the level of buyback without scaling back their investments.” The recent numbers give the argument teeth. Nvidia posted Q2 FY2027 revenue of $96.22 billion, up 105.9% year over year, with non-GAAP gross margin of 75.0% and free cash flow of $21.34 billion. The company returned a record $26 billion to shareholders in the quarter, including $20 billion in repurchases and $6 billion in dividends.
Against that, capital commitments are stacking up. Supply obligations rose to $279.0 billion, largely tied to memory for Vera Rubin, and guarantee obligations are capped at $108.5 billion for AI cloud and data center partners. CFO Colette Kress told analysts, “Relative to our plan to return 50% or more of free cash flow, we have returned 60% on a year-to-date basis. And going forward, we intend to increase and return excess free cash flow net of strategic uses.” That framework prioritizes strategic investment first and buybacks second, which is the opposite of what Cramer wants.
What Would Have to Happen for This to Be Real For any of this to move from talking point to policy, Nvidia’s board would have to authorize a repurchase program several multiples larger than the current one, and management would have to redirect cash currently earmarked for supply commitments, Frontier AI Lab investments (nearly $50 billion invested to date), and the $500 billion third-party financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. None of that has been signaled.
Cramer closed the segment with a call to action for Jensen Huang: “Mean it, show it, do it. It might be the best investment this amazing company’s ever made.” Whether Nvidia agrees is a separate question, and one investors will watch across the next several capital-return updates.
Contact [email protected] for any questions or corrections.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Nvidia (NVDA +3.95%) delivered another impressive set of quarterly results last week, reporting that revenue grew by 106% to $96 billion. It was the fourth straight quarter of accelerating top-line growth, which is rare for a company with a revenue base this large. In the earnings release, CEO Jensen Huang declared that "compute is revenue" after arguing that AI had reached an "inflection point" by becoming productive.
Data center revenue reached $89 billion, up 117%, as demand for its processors continued to outstrip the company's ability to supply them.
Management forecast revenue growth of roughly 70% for fiscal 2028, noting that its production capacity was constrained by memory supply. "Our demand is much higher than that," Huang pointed out on the earnings call.
CFO Colette Kress projected $1.3 trillion in capex from the top five hyperscalers next year and a cloud backlog of over $2 trillion.
Image source: The Motley Fool
More than just a chipmaker The chipmaker is increasingly financing the AI build-out. With its customers' spending outpacing their cash generation, Nvidia is helping secure over $500 billion in capital from third parties.
The company guarantees minimum revenue via take-or-pay contracts for part of the capacity, then earns from hardware sales and again from the rental upside. As the CFO put it on the call, "We get paid twice." Kress also acknowledged the obvious counterpoint, saying, "We know some will call this circular financing. We see it differently."
This model is supported by physical infrastructure, with Nvidia securing 4.25 gigawatts of power at SB Energy's Ohio campus to host OpenAI's compute. The company continues to move up the stack with its Vera CPU in production and networking revenue hitting a new high.
Sales of Vera Rubin, the next-generation CPU/GPU platform, are ramping up quickly and are expected to reach around 20% of data center revenue in the third quarter. Amazon Web Services alone will add 2 million additional GPUs through the first half of fiscal 2029.
Each platform generation has improved the revenue Nvidia captures per gigawatt, from roughly $18 billion with Hopper to $25 billion with Blackwell and $40 billion with Vera Rubin.
Custom silicon and the cost of money Nvidia's earnings report arrived the day after OpenAI published benchmarks for its custom Jalapeno chip, which topped Nvidia's Blackwell in efficiency. However, the comparison was against a chip using older HBM3E memory, not the HBM4 memory in Nvidia's new Rubin platform, which is already shipping. Developing it was a smart move by OpenAI, but, as with any new chip, reaching production at scale will be challenging and take time.
A more immediate consideration is the cost of money, as the yield on the 30-year Treasury is above 5%. With Nvidia's financing model dependent on access to capital, rising long-term interest rates could tighten access for the labs and the neoclouds, while falling yields would loosen it.
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Nvidia's shares are up 5% since the report, and the stock trades at roughly 18 times forward earnings. While the question of how much impact competitors' custom silicon will have on its business remains a long-term variable, Nvidia is building and financing the AI infrastructure powered by its chips. This position should serve it well as long as demand for them outstrips supply.
Jim Cramer wants Nvidia to announce the largest share repurchase in corporate history, and his valuation argument is harder to dismiss than his collateral logic deserves to be.
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Jim Cramer used his Monday CNBC segment to make an argument that has become his signature line on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction): the company is trading like a mature business while growing like a startup, and management should respond with the largest share repurchase in corporate history. He wants NVIDIA to quintuple its existing authorization and announce a half-trillion-dollar buyback, roughly a tenth of the company.
The premise rests on a valuation gap Cramer finds indefensible. “I think it’s absurd that Nvidia has an amazing order book and huge profitability, yet it trades at just 23 times this year’s earnings estimate,” he said, pointing to the underperformance since late October. The trailing multiple is 44x, but based on the $9.05 consensus for the fiscal year ending January 2027, the forward figure is closer to what Cramer described. That is a striking price for a business the CFO says will grow another approximately 70% in fiscal 2028.
Why The Valuation Gap Deserves a Serious Hearing NVIDIA just reported $96.22 billion in quarterly revenue, up 105.85% year over year, with Data Center revenue of $89.02 billion growing 117%. Non-GAAP gross margin reached 75.0%, and management guided the October quarter to $108 billion, plus or minus 2%. These are the operating results of a company at full acceleration.
The stock has not moved in kind. NVIDIA is up 16.73% year to date and 25% over the trailing year, meaningful gains that still lag what triple-digit revenue growth would normally command. Cramer is right that a forward multiple in the low twenties on a business compounding this fast implies the market is pricing a demand cliff.
The counterargument is that the discount reflects real risk: circular financing, customer concentration, and an order book increasingly backed by NVIDIA’s own balance sheet. Management disclosed $279 billion in supply obligations and partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to mobilize more than $500 billion in third-party capital. Jensen Huang acknowledged that “some will call this circular financing.”
Where the Collateral Argument Falls Apart Cramer’s defense of NVIDIA’s role as the AI industry’s banker leans on a claim that does not survive scrutiny. “The chips retain their value. Worst case scenario, they repossess the GPUs, maybe even for the same price they sold them,” he said. That is the wrong way to think about depreciating silicon in a market where each generation devalues the prior one.
NVIDIA itself explained why. Management said Vera Rubin delivers “30X higher throughput per megawatt” and “35X lower token costs relative to Grace Blackwell Ultra.” A used H100 is worth what it can earn against a Rubin rack, and that math gets worse every cycle. A customer default would likely arrive precisely when the secondary market is most saturated.
A buyback does not fix that. Repurchases shrink the share count and support EPS, but they do not create end demand, diversify the customer base, or reduce vendor-financing exposure. NVIDIA already has approximately $99 billion remaining on its repurchase authorization after returning $26 billion to shareholders in Q2, per the Q2 FY27 earnings release. Quintupling it would be a signal without addressing the underlying demand risk.
Is NVDA Stock a Buy? The competitive picture matters here. Advanced Micro Devices (NASDAQ:AMD) has a credible MI-series roadmap, and Broadcom (NASDAQ:AVGO) is building custom accelerators for hyperscalers who would rather not pay NVIDIA’s margin. Neither has closed the CUDA moat, and the broader buildout still has to be powered, cooled, and networked by somebody, which is why we pulled together seven AI-boom suppliers outside the chipmakers in a free report.
The bearish thesis on vendor financing is real, but the valuation asymmetry is larger. A business generating $21.34 billion of quarterly free cash flow at a forward multiple in the low twenties, with supply constrained through fiscal 2028, is being priced for a demand shock that management is not seeing. Cramer’s buyback plan is theater, but his read on the multiple is sound. The setup looks compelling on valuation, with the caveat that the customer-credit story is the risk worth watching closely.
Contact [email protected] for any questions or corrections.
Nvidia (NVDA -1.51%) is currently the world's largest company, with a market cap of about $5.3 trillion. While that may sound like too large a company to expect to market-beating returns from, I think it can keep delivering them. In fact, I think it could reach a market cap of $10 trillion relatively soon. And any stock that can nearly double in just over a year is well worth the investment.
So, how could Nvidia reach a $10 trillion market cap? Simple. It just needs to do what it says it will do.
Image source: Getty Images.
Nvidia is still the king of AI processors Nvidia makes graphics processing units (GPUs) and additional equipment to support their usage in data centers and other computing applications. GPUs are parallel processors, which makes them fantastic at rapidly handling the types of computationally heavy workloads that AI software generates. GPUs are also flexible and universal, and almost every company in the artificial intelligence realm has workloads that were formatted to run on Nvidia processors.
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Right now, the world is still in a compute-constrained state, so clients are ordering new computing units well in advance of when they'll need them. This means Nvidia already has a great idea of what next year's demand will look like. During Nvidia's fiscal 2027 second-quarter conference call, CFO Colette Kress guided for 70% revenue growth for its fiscal 2028 (which ends in January 2028). That's an incredible figure, and far exceeds what Wall Street analysts were projecting.
But what does this mean for Nvidia stock? I think it means that the company should achieve enough growth to boost it to a $10 trillion market cap.
Wall Street analysts have a consistent track record of underprojecting Nvidia's growth, but we'll use their consensus estimates for its fiscal 2027 (which ends in January 2027) as our baseline. For the current fiscal year, they expect $411 billion in revenue on average. Nvidia's trailing 12-month profit margin is 64%, so we'll pencil in a 60% margin on its revenue for next year.
If Nvidia grows at a 70% clip from a $411 billion baseline and converts 60% of that into net income, that would result in nearly $700 billion in revenue and $419 billion in net income. That's right -- Nvidia's projected growth rate indicates that its net income next year will exceed this year's revenue. That's simply incredible.
With $419 billion in net income, Nvidia would only need to trade at 24 times earnings to reach a $10 trillion valuation. That's about where the S&P 500 (^GSPC -0.71%) trades on average, making this a realistic projection. Nvidia isn't done growing yet, and now is the time to scoop up shares.
IRVINE, Calif., Sept. 02, 2026 (GLOBE NEWSWIRE) -- Linkhome Holdings Inc. (Nasdaq: LHAI) (“Linkhome” or the “Company”), an artificial intelligence-driven technology company, today announced the formation of its wholly owned subsidiary, Linkhome Technologies Inc. The new subsidiary is intended to focus on AI computing infrastructure, enterprise AI solutions, robotics and high-performance computing services.
As part of this strategic initiative, Linkhome Technologies has begun a preliminary evaluation of a proposed AI computing infrastructure project in Europe that, if pursued, could involve the deployment of up to 144 NVIDIA GB300 GPUs. If implemented, the proposed project would be designed to support computing requirements that the Company expects may arise from cloud service providers, enterprise AI applications, high-performance computing workloads and advanced robotics.
The Company’s board of directors has approved the formation of Linkhome Technologies and authorized management to conduct further evaluation and preliminary development activities related to the proposed European project. The board has not approved the proposed project itself or any related capital commitment. The Company has developed a preliminary internal budget, obtained non-binding indicative equipment quotations from third-party resellers and integrators, and initiated preliminary discussions with potential European data center operators, cloud service providers and prospective computing customers. No counterparty has committed to participate in the proposed project.
The initiative reflects Linkhome’s longer-term objective of expanding into AI infrastructure and seeking to develop, over time, a decentralized global computing platform that would be intended to connect high-performance GPU capacity with enterprise computing demand across multiple geographic markets. There can be no assurance that the Company will achieve this objective.
“AI infrastructure is becoming an increasingly important foundation for enterprise innovation, cloud computing and intelligent robotics,” said Bill Qin, Chief Executive Officer of Linkhome. “The formation of Linkhome Technologies is intended to enable us to explore this opportunity through a dedicated platform. We believe Europe may offer a combination of developing AI demand and established data center infrastructure, and we are at an early stage of evaluating whether and how Linkhome could participate in this market on a disciplined basis.”
The Company believes a distributed infrastructure model may provide enterprises with more flexible access to advanced GPU computing resources while allowing Linkhome to expand its technology services across international markets. The proposed European project is intended to help the Company evaluate the technical, operational and commercial viability of this model.
The proposed project remains in the evaluation, planning and commercial discussion stage. Its final scale, investment amount, location, construction schedule and commercial structure have not been determined and will depend on several conditions, including:
Final data center site selection and hosting arrangements;Availability and procurement terms for GPUs and related equipment;Project financing and capital allocation;Execution of definitive agreements with cloud service providers and computing customers;Availability of power, networking, cooling and other infrastructure;Required regulatory, compliance and internal approvals; andMarket conditions and the project’s overall economic feasibility. As of the date of this announcement, the Company has not entered into binding agreements for equipment procurement, data center hosting, project financing or customer capacity commitments in connection with the proposed European project. The Company has not made a final investment decision, and there can be no assurance that the project will proceed at the currently contemplated scale, location or timeline, or at all.
About Linkhome Technologies Inc.
Linkhome Technologies Inc. is a recently formed, wholly owned subsidiary of Linkhome Holdings Inc. that is intended to focus on AI computing services, enterprise AI solutions and high-performance computing infrastructure. Linkhome Technologies has not commenced operations and has no revenue, and its longer-term objective is to seek to develop a decentralized global computing platform connecting distributed GPU resources with enterprise demand and supporting applications across artificial intelligence, robotics, cloud computing and other high-performance computing markets. There can be no assurance that it will do so.
About Linkhome Holdings Inc.
Linkhome Holdings Inc. (Nasdaq: LHAI) is an artificial intelligence-driven technology company focused on applying technology across real estate, lending and enterprise services, and that is seeking to expand into digital infrastructure. Through technology development and business expansion initiatives, Linkhome seeks to deliver intelligent, efficient and integrated solutions to its customers. There can be no assurance that the Company’s expansion initiatives will be successful.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding the intended operations, business plans and future development of Linkhome Technologies; the preliminary evaluation, planning, potential financing and possible implementation of the proposed European AI computing infrastructure project; the potential deployment of up to 144 NVIDIA GB300 GPUs; the possible development over time of a decentralized global computing platform; expectations regarding demand for AI computing capacity in Europe and other markets; and the Company’s objectives to expand its enterprise AI, cloud computing, high-performance computing and robotics-related services. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “plan,” “potential,” “preliminary,” “proposed,” “seek,” “will,” “would” and similar expressions, although not all forward-looking statements contain these words.
Forward-looking statements are based on the Company’s current expectations, estimates, assumptions and beliefs as of the date of this press release and are subject to significant risks and uncertainties. Actual results may differ materially from those expressed or implied by these statements as a result of numerous factors, including the outcome of the Company’s preliminary evaluation of the proposed European project; equipment availability, allocation and pricing, including reliance on third-party resellers, integrators and other suppliers; the Company’s ability to obtain sufficient financing on acceptable terms, or at all; data center site and hosting availability; power, networking and cooling requirements; the ability to enter into definitive customer, vendor, hosting and financing agreements; customer demand and the willingness of counterparties to commit to computing capacity; the risks of establishing and operating a new subsidiary that has not commenced operations and has no revenue; risks associated with conducting business in international markets, including currency, tax, data protection and other regulatory requirements; regulatory and compliance requirements; market and competitive conditions; execution risks; and the other risks described in the Company’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report and subsequent periodic reports.
The proposed European project remains at a preliminary stage and has not been approved by the Company’s board of directors or finalized, and no capital commitment has been authorized. The Company cannot provide assurance that the project will be commenced or completed, that any financing or definitive agreements will be obtained, that any GPUs will ultimately be deployed, or that the project will generate any particular level of revenue or financial return.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise.
NVIDIA and GB300 are trademarks and/or registered trademarks of NVIDIA Corporation in the United States and other countries. The reference to NVIDIA products in this press release does not imply any partnership, endorsement or other affiliation between NVIDIA Corporation and Linkhome unless expressly stated otherwise.
Valencia, Spain-based startup iPronics said Tuesday that it has raised $125 million in venture capital with participation from Nvidia (NVDA.O) to shrink a new type of data center networking chip that could connect hundreds of thousands of computing chips.
iPronics is developing what is called an optical circuit switch, a type of switching chip made popular in data centers by Alphabet's Google (GOOGL.O) for its role in wiring up its AI supercomputers. Google's success with the switches has inspired a wave of startups to bring them to the outside world.
The key benefit of the OCS is the ability to quickly adjust to a new path around a computing chip that has burned out, something that has become inevitable as data centers house hundreds of thousands of chips.
"The failures are happening on a 'minute' time scale — it's not in the hours or months or weeks any more," Daniel Pérez-López, founder and chief technical officer of iPronics, told Reuters in an interview. "The first motivation is to have resilience — a resilient and reliable network that is able to basically rewire itself."
iPronics is hoping to keep that technological benefit while shrinking the size of the OCS equipment by about 20-fold from current sizes in order to fit more switches in a server rack. The company has been shipping its switches for about a year and said it is working with large AI infrastructure providers that it declined to name.
The funding round was by co-led by Maverick Silicon and Light Street Capital, with participation from new and existing investors including Triatomic Capital, Bosch Ventures, Catalight Capital and the European Innovation Council Fund. iPronics, founded in 2019 as a spin-off from Technical University of Valencia, has raised $177 million to date.
Finbold's AI Agent has predicted that semiconductor giant Nvidia (NASDAQ: NVDA) will remain above the $200 mark on September 30 as the company continues to benefit from strong artificial intelligence demand.
Nvidia is in advanced talks to acquire artificial intelligence startup Hugging Face in a transaction that may total about $14 billion, according to people familiar with the matter. Bloomberg Intelligence analyst Matt Bloxham has the details.
Investiční boom, který s sebou v posledních letech přinesla umělá inteligence, je historicky bezprecedentní, tvrdí známá poradenská společnost PricewaterhouseCoopers (PwC). Ta ve své nové studii uvádí, že globální výdaje na výstavbu a vybavení datových center by mohly do roku 2050 dosáhnout astronomických 31,6 bilionu dolarů.
V případě rychlejšího než očekávaného nástupu AI se objem investic může dokonce vyšplhat až k 50 bilionům dolarů. Pro srovnání, současný hrubý domácí produkt Spojených států se pohybuje okolo 30 bilionů dolarů, podotkla agentura Bloomberg.
Rostoucí využívání AI ze strany firem, státní správy i běžných spotřebitelů vede k masivní expanzi výpočetních kapacit po celém světě. Vedle technologických gigantů, jako jsou Microsoft nebo Amazon, investují do nových zařízení i specializovaní provozovatelé datových center. Největší část kapitálových výdajů přitom nesměřuje do samotných budov, ale do technologií uvnitř center, zejména do výkonných čipů a serverů, kde má dominantní pozici Nvidia.
Rozmach odvětví však naráží také na rostoucí odpor veřejnosti. Jen během letošního prvního čtvrtletí došlo k zablokování nebo odložení nejméně 75 projektů v souhrnné hodnotě zhruba 130 miliard dolarů, vychází z dat Data Center Watch. Odpůrci datacenter upozorňují především na vysokou spotřebu energie a vody, dopady na životní prostředí či širší společenské důsledky spojené s rozvojem AI, píše Bloomberg.
Největší podíl budoucích investic by měly získat Spojené státy, kam má podle základního scénáře PwC směřovat přibližně 15,1 bilionu dolarů. Region Asie a Tichomoří by měl absorbovat kolem 8,2 bilionu dolarů, Evropa 5,6 bilionu, Blízký východ 1,1 bilionu a Afrika zhruba 255 miliard dolarů.
Autoři ve své studii konstatují, že rozsah očekávaných investic do AI převyšuje i tak zásadní technologické a infrastrukturní projekty, jakými byly rozvoj železnic, elektrifikace nebo budování internetu. A zatímco například budování optických sítí nebo výrobních kapacit pro paměťové čipy vyžadovalo vysoké počáteční investice, tak datová centra budou potřebovat pravidelnou obměnu hardwaru. Servery, úložiště, síťové prvky i grafické procesory tedy budou muset být modernizovány v pravidelných intervalech, což vytváří dlouhodobou poptávku po kapitálu.
Na roční bázi globální investice do datových center vzrostou z přibližně 800 miliard dolarů v letošním roce na 1,1 bilionu dolarů v roce 2030, odhaduje PwC, přičemž do roku 2050 by pak mohly investice činit až 1,8 bilionu dolarů ročně. Významným zdrojem nového růstu mají být zejména Čína a Indie, kde kombinace rozsáhlé populace, rozvíjející se digitální ekonomiky a zatím nižší míry nasazení AI vytváří prostor pro rychlou expanzi.
Analýzu kapitálových výdajů zahrnující 46 zemí a teritorií v pěti světových regionech vypracovala pro PwC společnost Oxford Economics.
Klíčem jsou energie
I když je globální poptávka silná, faktory jako dostupnost energie, požadavky na datovou suverenitu a mezinárodní obchod s polovodiči určí, které regiony investice získají, uvedla PwC. Hlavní roli sehrají energie, které rozhodnou, kde se investice do infrastruktury umělé inteligence uskuteční. Velká část prognózy totiž závisí na tom, jak rychle lze zajistit spolehlivé dodávky elektřiny pro datová centra. Cenově dostupná, spolehlivá a stále více nízkouhlíková elektřina ve velkém měřítku je pro mnoho trhů nejnáročnějším požadavkem, který je potřeba splnit.
Výhled PwC zároveň předpokládá relativně otevřený globální obchod, zejména pokud jde o dodávky polovodičů. Významnější narušení dodavatelských řetězců by podle autorů mohlo celkový objem investic snížit téměř o pětinu. Naopak rostoucí důraz států na datovou a technologickou suverenitu by investice spíše přesměroval mezi jednotlivé regiony, nikoliv zásadně omezil.
„Otázkou za 31,6 bilionu dolarů není, zda kapitál existuje. Existuje. Otázkou také není, zda je poptávka skutečná. Je. Otázkou je, které regiony, operátoři a instituce jsou schopny ji zachytit a které ne,“ dodali autoři studie.
Nvidia (NVDA -1.51%) recently delivered exceptional second-quarter fiscal 2027 results. It more than doubled revenue and operating income year over year while maintaining a sky-high 75% gross margin, despite a 55% increase in operating expenses.
This was also the first quarter since Nvidia raised its quarterly payout from $0.01 per share to $0.25 per share -- a 2,400% dividend raise. Nvidia paid $6.05 billion in dividends in its latest quarter -- up from just $244 million in the first quarter of fiscal 2027. And in total, it returned a record $25.78 billion to shareholders through stock buybacks and dividends.
For context, Apple (AAPL +2.61%), which is typically the most aggressive company at returning capital to shareholders -- bought back $25.95 billion in stock and paid $4 billion in dividends in its latest quarter.
After correctly predicting Nvidia would make a substantial dividend increase in 2026, I'm predicting Nvidia will implement yet another massive dividend raise within the next year. Here's why.
Image source: Nvidia.
Nvidia's growth shows no signs of slowing Over the last couple of years, Nvidia has transformed from a high-octane growth stock that reinvested most of its excess capital back into the business to one that generates so much free cash flow (FCF) that it can afford to invest aggressively in research and development and return FCF to shareholders. This dynamic starkly contrasts with a company like Apple, which is no longer growing at a breakneck pace but is generating consistently high-margin cash flow that it uses to rapidly repurchase stock -- resulting in a 31.6% reduction in its share count over the last decade.
An expanding capital return program can sometimes signal that a business is maturing to the point where it doesn't have enough good ideas to put capital to work without taking on excess risk. But that isn't the case with Nvidia.
Nvidia gets a lot of attention as the world's most valuable company because its stock price has risen severalfold in recent years. But arguably the bigger story is that its earnings and revenue have grown even faster.
NVDA EPS Diluted (TTM) data by YCharts
It's virtually unheard of for a company this size to continue growing so quickly while maintaining high margins. And yet, Nvidia is growing quickly because it remains at the cutting edge of artificial intelligence (AI) innovation.
The next growth catalyst for Nvidia is its Vera Rubin platform, which began shipments in August. Nvidia expects Rubin to account for 20% of its data center revenue in the upcoming quarter -- marking the fastest ramp-up in company history. Rubin marks a monumental shift in AI computing and includes a rack-scale offering comprising multiple Nvidia chips and networking infrastructure. Nvidia expects the majority of AI infrastructure to be powered by this rack-scale solution due to its extreme co-design efficiency, which is the product of Nvidia controlling a larger share of the data center addressable market rather than just providing a few key components -- namely, graphics processing units.
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Extra cash is funneling directly to shareholders Rubin's impact is so significant that Nvidia has already released guidance for fiscal 2028 revenue, even though it is only halfway through fiscal 2027. Despite difficult comps, Nvidia is calling for fiscal 2028 revenue to increase by 70% year over year. And despite higher memory chip costs, Nvidia's margins remain sky-high, which is leading to surging FCF.
Nvidia CFO Colette Kress said the following on Nvidia's second-quarter fiscal 2027 earnings call:
In Q2, we returned a record $26 billion to shareholders, $20 billion through share repurchases, and $6 billion through our quarterly dividend of $0.25 per share. Relative to our plan to return 50% or more of free cash flow, we have returned 60% on a year-to-date basis. Going forward, we intend to increase and return excess free cash flow net of strategic uses.
That commentary suggests Nvidia is generating more cash than it knows what to do with, even after accounting for capital expenditures and operating expenses. So, going forward, it will simply pass more cash directly to shareholders. And given that buybacks are still more than 4 times larger than its dividends, I could see Nvidia continuing to increase its payout to shareholders.
Nvidia remains a compelling value Nvidia is transitioning from a cyclical semiconductor stock to a steady cash cow with a broadening customer base that includes hyperscalers, AI labs, AI start-ups, and enterprises that need compute. Nvidia will reduce its sensitivity to cyclical downturns as more companies depend on its hardware and software ecosystem for AI compute, from generative AI use cases to inference-heavy agentic AI becoming mainstream in enterprise workflows.
I could see a large portion of Nvidia's business become more dependent on maintaining and upgrading AI infrastructure than on an influx of hyperscaler spending. And if that happens, Nvidia could gradually evolve into an even higher-margin, higher-quality version of what Apple is today. Only Nvidia trades at just 23.4 times forward earnings compared to 36.2 for Apple.
Add it all up, and Nvidia remains one of the best AI stocks to buy now, especially for investors looking for a proven company with growing earnings rather than one priced on sky-high expectations alone.
NVIDIA Corp. (NASDAQ:NVDA) remains at the center of the AI infrastructure boom, but two prominent market watchers argue investors still underestimate different parts of the company’s strategy and long-term earnings potential.
“Mad Money” host Jim Cramer believes NVIDIA’s stock does not fully reflect its AI growth, profitability or expanding role in financing data center projects. Meanwhile, Melius head of research Ben Reitzes sees NVIDIA’s open-model strategy and physical AI as potential drivers of its next phase of growth.
Cramer Says NVIDIA Should Bet Bigger On Its Own StockCramer supports NVIDIA’s decision to provide financial backing for AI infrastructure companies that may struggle to obtain multibillion-dollar loans from traditional banks.
He told CNBC on Wednesday that NVIDIA effectively acts as a banker for the AI data center buildout while benefiting from its understanding of GPUs and their residual value.
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However, Cramer believes complicated arrangements involving companies such as Anthropic, Lambda and Hut 8 Corp. (NASDAQ:HUT) make NVIDIA’s strategy harder for Wall Street to appreciate.
He called NVIDIA “radically cheap” at 23 times this year’s earnings estimates and argued the company should follow Apple Inc.’s (NASDAQ:AAPL) example by dramatically expanding share repurchases.
Cramer proposed a $500 billion buyback targeting roughly 10% of NVIDIA, saying, “Right now, I believe there’s no better investment for NVIDIA than NVIDIA.”
His argument centers on valuation: Cramer believes NVIDIA can continue funding AI investments while using its cash generation to address what he sees as Wall Street’s undervaluation of the company.
Reitzes Sees Open Models And Physical AI Driving GrowthReitzes remains bullish on NVIDIA, maintaining a Buy rating and raising his price forecast to $420 following the company’s latest earnings.
He told CNBC on Tuesday that NVIDIA reduced uncertainty around gross margins for the next six quarters, providing greater visibility than most semiconductor and hardware companies.
Reitzes sees an even bigger opportunity in NVIDIA promoting open and open-weight AI models that perform best on its computing platform.
He described the approach as a “razor-and-blade strategy,” with NVIDIA giving away models while creating demand for its chips, software and infrastructure.
Reitzes expects physical AI and enterprise applications to require growing numbers of customized models, which could strengthen NVIDIA’s broader ecosystem.
He also believes the availability of open models will push Anthropic and OpenAI to continue investing heavily to remain at the AI frontier.
Reitzes expects that competitive cycle to support continued infrastructure spending and said physical AI could “explode,” driving additional demand for NVIDIA’s technology.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $349.15. Recent analyst moves include:
Citigroup: Buy (Raises Forecast to $315.00) (Aug. 27) Mizuho: Outperform (Raises Forecast to $315.00) (Aug. 27) JP Morgan: Overweight (Raises Forecast to $320.00) (Aug. 27) NVIDIA Top ETF Exposure Franklin Focused Dynamic Growth ETF (NASDAQ:FFOG): 9.73% Weight First Trust Innovation Leaders ETF (NYSE:ILDR): 9.79% Weight Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (NYSE:USNZ): 9.94% Weight Significance: Because NVDA carries such a heavy weight in these funds, significant inflows or outflows will likely force automatic buying or selling of the stock.
NVIDIA Price ActionNVDA Stock Price Activity: NVIDIA shares were down 0.06% at $217.32 during premarket trading on Wednesday, according to Benzinga Pro data.
Obnovené boje na Blízkém východě vyhnaly ceny ropy vzhůru, Brent se obchoduje nad 95 USD (+1 %). To obnovilo obavy z inflace a očekávání přísnější měnové politiky. Rostoucí ceny energií tlačí na dluhopisy, jejichž výnosy dosahují v globálním pohledu na úrovně viděné v r. 2008. Americké výnosy jsou nejvýše od roku 2023. Asijsko-pacifický region přes noc ztratil přes -1,5 % na týdenní minimum. Futures kontrakty pro Evropu se obchodují v záporu do -0,5 %, Wall Street přitom včera uzavírala s poklesem do -1 %. V regionu (rozuměj Evropa) se začínají opět sledovat ceny plynu, jehož úrovně na ročních kontraktech již překročily letošní maxima (nad 50 Euro). U jednotlivých akcií jsme viděli v prodlouženém obchodování skok vzhůru u Dellu (+8 %), jež zvedl roční prognózu výhledu tržeb. NVDA pokročila údajně v jednáních o akvizici startupu zabývajícího se AI Hugging Face. Ryanair snižuje cíl počtu cestujících pro fiskální rok 2027, uvedla že vysoké ceny ropy povedou k výraznému nárustu cen letenek v Evropě. Pražská burza se v úterý obchodovala na kladné nule, index PX uzavíral na 2799 bodech. Kupovaly se banky (např. Moneta +2,5 %), naopak CSG (-4,8 %) propadlo i kvůli změnám v indexu v Amsterdamu. Dnes bychom další růst u bank spíše nečekali.
I think the primary reason everyone is interested in Nvidia (NVDA -1.51%) stock again is the huge share price increase following the reported earnings.
*Stock prices used were the afternoon prices of Aug. 30, 2026. The video was published on Sept. 1, 2026.
Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Nvidia (NVDA -1.51%) hasn't only delivered exceptional revenue growth in recent years, but the tech giant has also generated enormous profit. For example, in the latest quarter, the company's revenue topped $96 billion, and net income reached $59 billion.
All of this is thanks to a wise bet Nvidia made about a decade ago. The company decided to focus on developing graphics processing units (GPUs) for the high-potential artificial intelligence (AI) industry. These are the workhorses that offer the power needed for key tasks like the training of models. Prior to this, Nvidia's GPUs primarily served the gaming market.
So, quarter after quarter, Nvidia has benefited from the AI boom. Earnings have marched higher as demand for AI infrastructure increased, and this momentum continues. In fact, growth could continue well into the future as AI is applied more frequently to real-world applications -- for this, GPUs and similar chips play a central role.
All of this sounds fantastic. But there may be one cloud in this sunny picture. Nvidia shareholders should brace themselves for one particular thing in the months to come. Let's check out what it means for the long-term picture.
Image source: Getty Images.
Demand for Nvidia's GPUsFirst, let's start with the good news. Demand for Nvidia's GPUs continues to roar higher, and on top of that, the company just began production shipments of its latest platform, Vera Rubin. This system represents an exciting turning point for Nvidia as it includes GPUs as well as something new: Nvidia's first stand-alone central processing unit (CPU). CPUs are chips generally found in all computers, and they fuel the actions of AI agents. Agentic AI, involving AI taking steps to address problems on behalf of humans, is seen as the next AI growth driver.
Nvidia aims to be a leader in this space, too, adding to its GPU dominance, and it may be well on the way. The company predicts $20 billion in stand-alone CPU sales this year.
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Meanwhile, Nvidia did something it's never done before: It offered guidance for the next fiscal year, citing greater-than-ever visibility. Nvidia predicts revenue growth of 70% for the 2028 fiscal year.
So, where is the cloud in this sunny landscape? Well, Nvidia expects growth to continue, but it may come at a higher price. The company, which has maintained gross margins in the mid-70% range, expects to see lower profit on sales later this year. Nvidia, after delivering a gross margin of 75% in the second quarter, says that gross margin will bottom in the range of 71% to 72% in the fourth quarter. The company predicts the figure will settle at 72% to 73% in the 2028 fiscal year, or the period beginning early next year.
"Extreme pricing conditions"This is due to "extreme pricing conditions in memory," finance chief Colette Kress said during the company's earnings call last week.
The colossal levels of demand for AI infrastructure -- something that's clearly benefiting Nvidia -- are also driving the memory shortage and memory price increase -- something that's hurting Nvidia and peers.
So, investors should brace themselves for this pattern in the quarters to come. Now, let's consider what it means for the long-term picture. While the memory situation will weigh on profitability on sales, it's important to keep in mind that it's not catastrophic. Gross margin above 70% still is considerably high, and if Nvidia is able to maintain stability around this level, this should be seen as a sign of strength.
As for the long-term, memory chip players are addressing the shortage by adding capacity, and this should boost supply. That doesn't necessarily mean prices will come down -- at least as long as high demand continues. But Nvidia benefits from this demand, and is demonstrating that it can manage higher memory prices by maintaining a high gross margin. Meanwhile, Nvidia may also gain in efficiency as it rolls out new platforms annually.
All of this means that, while any decline in gross margin is disappointing, it's important to put the situation into perspective. Nvidia remains on track to greatly benefit from AI growth in the years to come -- and that makes it a fantastic stock to buy and hold.
While Nvidia (NVDA.O) is synonymous with the AI boom, a lesser-known group of power and cooling equipment suppliers is cashing in on a global data centre construction spree as developers race to avoid infrastructure bottlenecks.
Energy-hungry data centres have triggered a surge in demand for equipment ranging from transformers to advanced cooling systems, creating winners across Asia's supply chain, though earlier stock-price gains have moderated.
McKinsey forecasts nearly $7 trillion in data-centre investment globally by 2030; Nvidia last week said it expects AI spending to remain robust for years.
But building data centres fast enough to meet demand is becoming more difficult. Hyperscalers often want facilities delivered within six months, but grid connection delays can stretch as long as 24 months in some emerging markets and more than eight years in major developed markets, according to consultancy Pivotale AI.
"Outside the industry circle, people are talking about (graphics processing units), but within the circle, people most certainly question you about the lead time for generators and transformers," said Wing Kin Cheung, the CEO of digital infrastructure service provider BodaData.
Transformers convert high-voltage electricity from grids into levels suitable for servers, cooling systems and power distribution units.
AI SCRUTINY DEEPENS
Leading transformer suppliers including South Korea's HD Hyundai Electric and China's Hainan Jinpan Smart Technology (688676.SS) reported surging demand in the first half of 2026 tied to AI infrastructure projects, particularly in North America.
HD Hyundai Electric recently said demand in Europe was rising as U.S. hyperscalers expanded investments in markets like Finland, Germany and Britain, while Middle East demand remained strong.
Its order backlog rose 23% to $8.5 billion at the end of June from six months earlier. It said it expected data centres to account for 16% of its power business's new orders next year, up from 6.3% this year.
For Jinpan, new data-centre orders in the first half more than quadrupled from a year earlier, while its related backlog nearly tripled.
As AI chips consume more electricity, equipment makers are also betting on technologies aimed at improving efficiency and reducing environmental impacts, amid growing public scrutiny over data centres' consumption of water and electricity.
Bank of America estimates power consumption per AI rack could climb to more than 1.5 megawatts by the end of 2030, nearly 100 times that of a conventional rack, citing Nvidia's roadmap.
One technology attracting greater attention is the solid-state transformer (SST), a device that replaces bulky magnetic coils and copper windings with semiconductors to transform and route electricity.
UBS estimates SSTs will increase power efficiency by around 4% and reduce costs. While commercial adoption remains in its early stages, the bank expects their penetration to climb to 40% in 2030 and forecasts that Chinese companies will gain share thanks to technological expertise and cost advantages.
HD Hyundai Electric and Jinpan said they are deepening SST development, while Taiwan's Delta Electronics (2308.TW), a major supplier of power infrastructure, said a small data centre is using its SSTs.
"It is fundamentally an energy gateway, which requires a different overall design and power architecture," Delta Chairman Ping Cheng said in July. "Adoption will therefore take time."
COOLING RACE
Cooling systems are emerging as another growth area as operators struggle to manage the heat generated by powerful AI chips.
"Power and cooling basically go hand in hand; so basically the more power you use, the more cooling you need to use because you generate heat," said Matty Zhao, Bank of America's Asia-Pacific head of research for basic materials, oil and gas.
The bank forecasts liquid cooling will account for 70% of new AI data-centre installations versus air cooling by 2030, up from about 30% today. Liquid cooling can reduce energy consumption by over 27%, McKinsey says.
Developers are also exploring unconventional approaches, including floating facilities, underwater data centres and servers in caves or tunnels.
That is creating opportunities for a broader range of suppliers.
"With the expansion of data center self-generation and the floating data center market, opportunities are also opening up to enter new markets for marine medium-speed engines," HD Hyundai Electric said.
Strong demand for thermal-management products is lifting Delta and local peers Asia Vital Components (3017.TW) and Auras Technology , as well as China's Shenzhen Envicool Technology (002837.SZ). All are suppliers in Nvidia's ecosystem.
SUPPLY CHAIN CONSTRAINTS
Despite surging orders, the stock-price gains of suppliers have moderated as investors question elevated valuations amid intensifying competition.
Delta's shares are up more than 90% this year, while HD Hyundai Electric has stayed largely flat, cooling from gains of more than 100% last year. China's Jinpan and Envicool have fallen nearly 30% and 20%, respectively, after surging 118% and 244% in 2025.
"Even if revenue increases, I think gross margin will probably remain at roughly this level," Delta's Cheng said.
"There are many variables in the market, including new product platforms, deployment delays and component shortages. These issues may become somewhat more serious in the second half of this year."
Bank of America's Zhao said investors should be aware of potential risks.
"Not everyone can win," she said. "You have to be cherry-picked for the leaders who actually get the customers."
Nvidia Corporation is rated a Strong Buy, leveraging NeoCloud revenue sharing, Hugging Face integration, and $500B private equity backing to underwrite global AI compute. NVDA's recurring-yield business model and SaaS/IaaS transition support potential multiple expansions toward high-margin semiconductor/software peers despite near-term gross margin compression. Key risks include $105B contingent liability tied to OpenAI, memory cost inflation, and custom inference ASICs like Jalapeño threatening NVDA's architectural lead.
Nvidia is also reportedly holding the data-center lease Summary
Anthropic signed a $35 billion cloud dealNvidia will supply the chips
Nvidia Corp. (NVDA, Financials), the leading artificial intelligence chipmaker, is taking a deeper role in Anthropic's latest infrastructure expansion than simply supplying GPUs.
Anthropic has signed a cloud-computing deal worth $35 billion with Nvidia-backed provider Lambda, according to The Wall Street Journal.
Nvidia will supply chips for the project and is also reportedly holding the lease on the Texas data center supporting the agreement.
The facility is being developed by Hut 8 in Nueces County, Texas. For investors, that structure is the bigger story.
Nvidia is increasingly using its financial strength to help secure infrastructure for customers that ultimately consume its chips. That can accelerate AI capacity growth, but it also means Nvidia is taking on a larger role in financing the ecosystem around its own products.
The arrangement shows how tightly linked AI chip demand, data-center construction and cloud financing have become.
Anthropic is one of the largest developers of frontier AI models, making the $35 billion commitment another sign that spending on AI infrastructure remains enormous.
The deal also gives Hut 8 exposure to one of the biggest announced AI cloud commitments in the market.
Investors will be watching whether Nvidia continues using its balance sheet and leasing arrangements to support other large AI customers as the industry races to add computing capacity.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Jensen Huang turned a modest chip startup into the backbone of the global AI arms race, and his personal fortune now rivals the biggest names in tech. But three mounting challenges could test whether Nvidia's reign at the top is…
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Jensen Huang is the world’s 8th-richest person, with a net worth of $180 billion, putting him just below Meta’s (NASDAQ: META | META Price Prediction) Mark Zuckerberg. Huang has turned a modest-sized computer chip company founded 33 years ago into the arms merchant of the global AI industry.
Nvidia (NASDAQ: NVDA) is also the world’s most valuable company, with a market cap of $5.33 trillion. Nvidia’s founding in 1993 is a testament to patience. The stock’s biggest run-up was in the last five years, during which it has surged 886% compared to the S&P 500 at 69%.
By last count, 50% of Nvidia’s 42,000 employees are worth over $25 million, although that figure is a guess.
Beyond its status as the arms merchant of the AI industry, Nvidia’s growth rate is breathtaking. In the most recent quarter, revenue rose 106% to $96.2 billion. Net income was up 126% to $60 billion. Nvidia expects revenue this quarter to hit $108 billion.
Nvidia faces three challenges. The first is simple. Will AI grow at its current pace? To a large extent, that depends on whether it has value for companies that makes them much more efficient or improves their business prospects. Today, depending on estimates, this could cost millions of people in the US their jobs.
The next is whether Nvidia can remain the premier AI chip company. For AI training, it has about 90%; for AI inference, the future is about 70%. Almost no one has made a powerful case that these figures will erode soon.
The final gamble is Nvidia’s huge investments in AI companies that run the data centers. These investments are into the tens of billions of dollars. Nvidia has become one of the sector’s largest banks. These include Intel, CoreWeave, Synopsys (NASDAQ: SNPS), and Coherent (NASDAQ: COHR)
Nvidia has also invested directly in data centers. Along with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, Nvidia put $350 billion into future AI infrastructure build-out.
For the time being, Huang’s net worth seems safe
Contact [email protected] for any questions or corrections.
Anthropic has agreed to a $35 billion deal to buy computing power from Nvidia-backed cloud provider Lambda, the Wall Street Journal reported, citing unnamed sources.
The new capacity will be sourced from a Texas data center operated by bitcoin miner Hut 8, with Nvidia holding the underlying lease on the property, according to the report.
The arrangement is the latest example of the tangled web of deals reshaping the AI industry, with Nvidia serving simultaneously as landlord, chip supplier and facilitator across the transaction. Anthropic has now signed $175 billion in cloud deals in recent months as it looks to secure computing capacity ahead of an anticipated supply crunch.
The capacity for the Anthropic-Lambda deal will run through Hut 8's Beacon Point campus in Nueces County, Texas. Hut 8 had previously signed two 15-year leases covering 704 megawatts at the campus with an investment-grade customer later identified as Nvidia, which holds the primary facility lease. Those underlying contracts carry $19.6 billion in base-term contract value for Hut 8.
Once fully operational, the 704-megawatt Beacon Point campus is expected to generate an average of $1.31 billion in annual operating income for Hut 8.
Under the structure of the deal, Anthropic pays Lambda, Lambda installs Nvidia hardware, and Nvidia pays Hut 8 the underlying facility rent, a setup that guarantees Hut 8's long-term infrastructure revenue regardless of specific compute utilization.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Despite the advent of alternatives such as Alphabet's Tensor Processing Units (TPUs), Nvidia (NVDA -1.64%) remains the leader of the artificial intelligence (AI) data center chip market. It sold $89 billion worth of data center silicon last quarter alone.
But more than just chips go into data center operations. Processing capacity is another aspect of artificial intelligence data centers. Networking is another. Electricity is still another, along with cooling. One of these more nuanced slivers of the AI business has gone largely unnoticed by both Main Street and Wall Street. And despite what you're probably thinking, it's not onsite power like the electricity generated by GE Vernova's (GEV -0.17%) natural gas power turbines.
The overlooked aspect of the modern-day AI business is the 800-volt power distribution equipment that could eventually become the industry norm, making the companies operating in this space a lot of money.
Image source: Getty Images.
A new norm for data centers is on the horizon A quick lesson: The ordinary electrical outlets in your home deliver 110 alternating current (or AC) volts, while appliances like your dryer or oven need between 220 and 240 volts to function. Some industrial manufacturing equipment requires 440 volts to operate. And by and large, data centers have historically been built to use these long-standing conventional voltages, particularly within the United States.
With energy prices soaring, though, every potential improvement in data centers' electrical efficiency matters. And as it turns out, 800-volt direct-current platforms are far more power-efficient, and therefore cheaper to operate. Specifically, this option costs about 10% less than most of the power supplies readily available right now.
And this technology is far from being merely theoretical or experimental. Vertiv (VRT -1.05%) -- the company arguably best known for its data center cooling solutions -- co-announced with Nvidia in August of last year that it was making good design progress with its 800-volt power infrastructure specifically for Nvidia's ballyhooed next-generation Vera Rubin accelerators.
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Nvidia and Vertiv aren't the only players adapting to 800-volt power supplies, though. Chipmakers Navitas Semiconductor (NVTS -5.13%) and Texas Instruments (TXN -3.08%) are moving in this direction, while smaller players like Korea-based Delta Electronics and non-publicly traded Schneider Electric are developing 800-volt power distribution equipment for data centers.
Vertiv and Nvidia are arguably leading the race, however. Nvidia confirmed in mid-August that its MGX-compatible direct current 800-power rack will be available before the end of 2026, firmly launching the beginning of a new chapter in AI data centers' power management.
There should be plenty of business to go around, given that many modern-day data centers' power consumption is measured in megawatts.
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Just keep your eyes peeled There is a challenge here. While no one disputes that 800-volt direct current platforms are more power-efficient and therefore offer an important cost savings, we're still at the early stages of a transition that could take years, and the industry is already committed to spending over $700 billion this year alone on other AI infrastructure. It may balk at replacing recently installed power supply equipment, even if it is inferior to newer options.
Still, it's a technological upgrade with clear potential, even if most of Wall Street isn't paying attention yet. You'll want to keep your eyes and ears open for how this story develops simply because there's an opportunity buried within it.
Nvidia (NVDA) showed the AI trade remains very much alive, says Sylvia Jablonski, along with how important everything that energizes AI really is. She talks about how memory and photonics "fuel the engine" to AI, pointing to several ETFs investors can use to add exposure to portfolios.
SB Energy, the artificial intelligence power infrastructure company backed by Softbank, OpenAI and Nvidia, has filed for an initial public offering with the Securities and Exchange Commission.
Among the risk factors listed in the Tuesday filing, SB Energy said it's "substantially dependent" on the performance of OpenAI as both a tenant and equity investor. OpenAI CEO Sam Altman was an early personal investor in the company as well.
"This concentration means that our near-term revenues, project-level financing arrangements, and development plans are significantly linked to OpenAI's continued performance under our lease and related agreements," the filing states.
The company relies heavily on outside financing from partners for its data center campuses, and hasn't yet generated any revenue from that portion of its business, according to the SEC filing. None of SB Energy's data centers are operational yet.
For the first half of 2026, SB Energy incurred net losses of roughly $3.2 billion, citing "substantial investments" in its data center strategy, and generated about $139 million in revenue mostly from its legacy energy business over the same period.
Nvidia announced in August that it would provide $105 billion in financing for an OpenAI data center in Ohio that will be built by SB Energy.
"The reason Nvidia is on our part of the equation here is that, you know, helps us to unlock things like investment-grade financing. It helps to ensure the project is a success," CEO Rich Hossfeld told CNBC's "Squawk Box" after the financing announcement.
Read more CNBC tech newsHe beat Big Tobacco. Will the same playbook work against Meta and social media?OpenAI to end model access to Cursor after acquisition by Elon Musk's SpaceXTech backlash reaches fever pitch as AI angst collides with social media fearsApple hikes subscription prices for Apple TV and Apple One in the U.S.The company will trade on the Nasdaq and Nasdaq Texas under the ticker symbol SBE. Softbank is the controlling shareholder.
While the company hasn't announced pricing or a specific timeline for its debut, it could begin trading as soon as this month, The Wall Street Journal reported. According to the Journal, the company is looking to raise between $5 billion and $7 billion from the offering.
The IPO prospectus also flagged the growing public backlash against data centers as a risk factor.
"We may face community opposition, local moratoria and hyper-local dissent, including growing public resistance to AI and AI-related infrastructure, that may adversely affect our data center and power generation businesses and operations," the filing read.
Among other risks the company disclosed in its S-1 were technological advancements that "could render our facilities obsolete or unmarketable," failure of businesses to adopt AI, regulatory changes and decelerating capex from hyperscalers.
Mentions of OpenAI are almost as plentiful as Softbank itself, showing up 306 times throughout the S-1 compared to Softbank's 325. Nvidia is mentioned 135 times.
Key Takeaways NVIDIA's Q2 revenues jumped 106% to $96.22B, led by 117% Data Center growth to $89.02B.NVIDIA guides Q3 revenues to $108B, with Vera Rubin set to drive about 20% of Data Center revenue.NVIDIA trades at 17.75X forward earnings, below the tech sector's 20.76X average despite strong growth. NVIDIA Corporation (NVDA - Free Report) continues to raise the bar for AI-driven growth. Its second-quarter fiscal 2027 results showed triple-digit revenue and earnings growth, while strong third-quarter guidance points to another record quarter.
Demand for AI infrastructure remains robust across hyperscalers, enterprises, AI startups and sovereign customers. With new products expanding its opportunity, NVDA stock appears well-positioned for further gains despite supply constraints.
NVIDIA’s Q2 Performance Shows AI Demand Remains StrongNVIDIA delivered another exceptional quarter, with second-quarter revenues jumping 106% year over year and 18% sequentially to $96.22 billion. Data Center revenues were particularly impressive, rising 117% year over year and 18% sequentially to $89.02 billion. The business benefited from continued strength in Blackwell and accelerating demand from both hyperscalers and its broader AI customer base.
Profitability also remained impressive. Non-GAAP gross margin increased to 75% from 72.5% a year earlier, while non-GAAP operating income surged 124% to $63.96 billion. Non-GAAP net income jumped 118% to $53.95 billion, and non-GAAP earnings per share increased 120% to $2.22.
In the second quarter, the company generated operating cash flow of $24.08 billion and free cash flow of $21.34 billion. This gives NVIDIA ample flexibility to invest in growth while returning capital to shareholders. It returned approximately $25.78 billion to shareholders through repurchases and dividends during the second quarter.
Strong Q3 Guidance Supports NVDA’s Bull CaseNVIDIA expects third-quarter revenues of $108 billion, plus or minus 2%, implying another sequential increase. The company expects non-GAAP gross margin of 74%, plus or minus 50 basis points. This outlook does not include any Data Center compute revenues from China, suggesting that current expectations are not dependent on a recovery in that market.
The outlook is supported by continued Blackwell demand and the rapid rollout of Vera Rubin. NVIDIA began production shipments of Vera Rubin in August, with major hyperscalers and AI infrastructure providers already adopting the platform. The company expects Vera Rubin to account for about 20% of Data Center revenues in the third quarter.
Multiple Growth Engines Strengthen NVIDIA's Long-Term StoryNVIDIA's opportunity extends well beyond selling graphics processing units. Its full-stack AI platform includes central processing units, networking, software and complete AI factory systems. The company forecasts that its revenue opportunity per gigawatt has expanded from about $18 billion with Hopper to $25 billion with Blackwell and $40 billion with Vera Rubin. This rising value per deployed gigawatt gives NVIDIA another avenue for growth as AI infrastructure expands.
The customer base is also becoming more diversified. Hyperscale revenues surged 117% year over year to $48.71 billion in the second quarter, while ACIE revenues — covering AI clouds, industrial and enterprise customers — jumped 138% to $40.31 billion. Amazon Web Services also announced plans to deploy an additional 2 million NVIDIA GPUs through the second quarter of fiscal 2029, highlighting sustained demand from major cloud providers.
NVIDIA expects fiscal 2028 revenues to grow approximately 70%. The company noted that revenue growth expectations for fiscal 2028 are a supply-constrained outlook, meaning demand could be even stronger if more capacity were available.
NVIDIA is also investing heavily to secure that supply. Supplier commitments rose to $279 billion at the end of the second quarter, primarily related to memory procurement. The company is further expanding its ecosystem through AI cloud partnerships, financing initiatives and strategic investments.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 revenues indicates year-over-year growth of 85.4% and 2.2%, respectively. The consensus mark for earnings calls for a year-over-year increase of 93.3% for fiscal 2027 and 60% for fiscal 2028. Analysts are also becoming optimistic about the company’s long-term prospects as reflected in their upward earnings estimate revisions over the past seven days.
NVDA Stock Is Available at a Relatively Attractive ValuationDespite its leadership position in the AI chip space, NVIDIA stock has delivered relatively modest gains this year. Shares have rallied 26.7% over the past year, lagging the broader Zacks Computer and Technology sector’s 30.2% rise.
The stock has also significantly underperformed several semiconductor peers, including Intel Corporation (INTC - Free Report) , Marvell Technology, Inc. (MRVL - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . Year to date, shares of Intel, Marvell Technology and Advanced Micro Devices have surged 267.9%, 237% and 189.1%, respectively.
NVIDIA One-Year Price Return Performance
Image Source: Zacks Investment Research
Nonetheless, the positive side of this underperformance is that NVDA stock trades at a discount to the sector’s average. The stock currently trades at a forward 12-month price-to-earnings (P/E) multiple of 17.75. This is below the sector average of 20.76. For a company delivering triple-digit revenue and earnings growth, this valuation gap makes the stock particularly interesting.
NVIDIA Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
NVIDIA’s valuation is also significantly lower than that of semiconductor peers such as Advanced Micro Devices, Marvell Technology and Intel. At present, Advanced Micro Devices, Marvell Technology and Intel trade at forward 12-month multiples of 38.56, 40.02 and 50.07, respectively.
A lower valuation multiple is notable because NVIDIA arguably possesses stronger growth prospects, higher profitability and a more dominant competitive position than many of its rivals. This suggests that investors are not paying an excessive premium for the company’s future earnings potential.
If NVIDIA continues delivering strong financial results, the current valuation could leave room for additional upside over the long term.
Conclusion: Buy NVIDIA Shares Right NowThe combination of explosive Data Center growth, strong third-quarter guidance, the Vera Rubin product cycle, rising AI infrastructure spending and expanding customer diversity provides a compelling long-term investment case. NVIDIA's supply constraint is a risk, but it is largely tied to the same powerful AI demand driving growth.
With NVDA trading below the broader tech sector's average forward P/E despite its superior growth profile, the stock looks worthy of consideration for investors seeking long-term exposure to the AI infrastructure boom.
NVIDIA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA just posted record quarterly revenue while its stock barely budged, and the gap between what Wall Street expects and what the next four years could actually deliver may be wider than almost anyone realizes.
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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just posted $96.22 billion in quarterly revenue growing 105.85% year over year at a $5.25 trillion market cap.
Jensen Huang called it plainly: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” Shares are up 16.79% YTD. Can NVDA hit $330 by 2030, reaching roughly $8 trillion?
Why NVIDIA Shares Are Stuck Despite Record Fundamentals After a fifth straight earnings beat, the stock added just 1.32% last week and dropped 4.57% on August 28. The one-month gain of 14.49% is strong, yet barely closes the gap to where fundamentals point. Supply commitments have swelled to $279 billion, mostly tied to memory for Vera Rubin. Days sales outstanding stretched to 60 days from 45 days.
Retail chatter about “circular financing” between NVIDIA and frontier labs persists. A beta of 2.215 means every macro wobble punches this stock hard. Management is guiding gross margin down to 71% to 72% in Q4 before settling at 72% to 73%. That compression, plus zero China Data Center compute revenue in the outlook, is what has hesitation.
Wall Street Sees 40% Upside. My Model Sees More Analyst target sits at $305.79, built from 10 strong buys, 48 buys, 2 holds, and 1 sell. Our model base case lands at $300.33 for one-year upside of 38.05%, with a bull case at $342.77 and a bear at $254.47. Model confidence is 0.9.
Wall Street is anchored to the next four quarters and under-weighting the five-year setup, where our base-case endpoint reaches $503.91 by August 2030. With 95% bullish analyst sentiment and quarterly earnings growth of 127.8% year over year, the near-term target range looks conservative relative to the AI infrastructure buildout ahead.
Path to $330 Per Share by 2030 Reaching $330 from today’s price of $217.55 requires a gain of 51.7%. With forward EPS of $9.91, a $330 price implies a forward P/E of 33x. Our base case of $300.33 already implies 31x, so the bold target requires roughly 2x additional multiple expansion. That is achievable if earnings compound as management guides.
Jensen told investors NVIDIA expects to “grow revenue by approximately 70% in fiscal 2028” and described the outlook as “supply-constrained.” Cloud industry backlog is now “greater than 2 trillion” and top-five hyperscaler capex is heading toward nearly $800 billion in 2026 and $1.3 trillion in 2027.
Revenue opportunity per gigawatt has climbed from $18 billion with Hopper to $25 billion with Blackwell to $40 billion with Vera Rubin. If EPS compounds at those rates, the multiple compresses and $330 becomes conservative.
Risk: hyperscaler capex reset or export-control shock breaks momentum.
Hyperscaler capex at $800 billion in 2026 and $1.3 trillion in 2027 has to be powered, cooled, and networked by somebody other than NVIDIA. We rounded up seven suppliers riding that same buildout in a free report on AI infrastructure stocks that aren’t chipmakers.
Where NVIDIA Trades Today vs Its Earnings Power On forward P/E of about 26 against forward EPS of $9.91, NVIDIA looks reasonably valued relative to 127.8% earnings growth and a PEG of 0.628.
Shares sit between a 52-week high of $236.26 and low of $163.85. The 10-year total return of 14,271.4% shows the market has repeatedly under-priced NVIDIA’s platform economics. That underpins the $8 trillion thesis.
Is $330 Realistic? My Verdict Reaching $330 by 2030 requires a 51.7% total return over roughly four years, or about 11% annualized. That is well inside our five-year base case of $503.91.
Three things need to break right: Vera Rubin ramps on schedule with hyperscalers absorbing every wafer, gross margins stabilize at management’s 72% to 73% floor, and OpenAI’s approximately 12 gigawatts of committed compute gets financed. A sudden AI capex reset by top-five hyperscalers derails it. We’ve outlined the blueprint for how NVIDIA could reach $330 in 2030.
Contact [email protected] for any questions or corrections.
Nvidia just anchored a $35 billion compute deal where it supplies the chips, backs the cloud tenant, and holds the lease on the data center, raising a question even its own CFO felt compelled to address on the earnings call.
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$35 Billion at a Glance $35 billion. That is the size of the cloud compute deal Anthropic just signed, backed by NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), according to a Wall Street Journal report. Under the arrangement, Anthropic will rent GPU compute from Lambda, an Nvidia backed cloud provider. NVIDIA supplies the chips and holds the lease on the underlying data center, a 700 megawatt campus in Nueces County, Texas being developed by Hut 8. The figure represents a contracted commitment across a multi year term, distinct from reported revenue.
What the Anchor Role Really Buys NVIDIA is playing three roles in one transaction: chip supplier, equity backer of the intermediate cloud (Lambda), and lease anchor on the physical site. NVIDIA had signed its own agreement with Hut 8 weeks earlier to secure that capacity, with Lambda now plugging in to provide compute to Anthropic. The 700 megawatt campus is a reminder that the chips are only part of the buildout: the power, cooling, and networking suppliers behind sites like this are the subject of a free report we put together here. The Anthropic deal follows a separate $45 billion agreement Anthropic signed earlier in August with EnCore, another Nvidia backed cloud provider.
The mechanics compound existing balance sheet commitments. NVIDIA closed Q2 FY27 with $279.00 billion in supply obligations and $108.5 billion in guarantee obligations for AI cloud and data center partners. CFO Colette Kress told analysts NVIDIA has “invested nearly 50 billion in the Frontier AI Labs” and expects AI lab demand supported by its balance sheet to represent “roughly a quarter of our business next year.”
Market Reaction Since the Filing NVDA is up 5.9% over the past week and 18.52% year to date through August 31, 2026. Shares traded at $219.37 intraday on September 1, 2026, off 0.64% from the prior close of $220.78. Market cap sits at $5.33 trillion.
Bear Case: Balance Sheet as a Service The Anthropic pact is a cleaner example of the circular financing critique than any equity investment NVIDIA has disclosed. NVIDIA underwrites the facility, backs the cloud tenant, and supplies the silicon that generates the rental revenue flowing back through the chain. Kress acknowledged the framing on the Q2 FY27 call: “We recognize the scale of this support, and we know some will call this circular financing. We see it differently.” Her defense rested on fungibility: “The NVIDIA Compute platform is fungible and durable and can be redeployed to support other customers.”
The risk map is denser than a single deal. Days sales outstanding stretched to 60 days from 45 days on extended payment terms for large investment-grade customers. Inventory reached $32 billion ahead of the Vera Rubin ramp. Gross margin is guided to 74.0% in Q3, and management said it will “bottom in Q4 in the 71% to 72% range” as memory costs climb. Analyst Vivek Arya of Bank of America pressed the tension directly: “A lot of these investments are designed to help the frontier labs, especially OpenAI and Anthropic, but both of them are designing their own custom chips.”
The deal ties NVIDIA’s reported growth to counterparties whose “balance sheets and credit profiles” cannot yet independently finance the compute they consume. That is the same loop skeptics flagged when NVIDIA lined up Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to raise “over $500 billion of third-party capital” for the same customer set.
Bottom Line for Long Term Holders The Anthropic pact is a stress test of NVIDIA’s ecosystem thesis. The company delivered Q2 FY27 revenue of $96.22 billion, up 105.85% year over year, and guided Q3 to $108.0 billion. The next scheduled catalyst for shareholders is the $0.25 quarterly dividend, with a record date of September 10, 2026 and payment on October 1, 2026. Whether $35 billion of Anthropic compute becomes recurring cash or a footnote on a guarantee schedule depends on one thing: how many tokens Claude sells.
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NVIDIA Corporation NASDAQ: NVDA is executing a calculated, two-pronged expansion to protect its accelerated computing empire from threats posed by custom silicon. By injecting approximately $3.5 billion into MediaTek to capture edge workloads and advancing inference-focused platforms such as Rubin CPX and Groq 3 LPX, NVIDIA is aggressively fortifying its hardware moat.
Investors observing the space might weigh these structural dominance plays against near-term margin compression and looming macroeconomic rate-hike headwinds. NVIDIA recently reported quarterly revenue of approximately $96.22 billion, representing a 105.9% year-over-year increase. Top-line beats are no longer enough to satisfy a market hyper-focused on forward vulnerabilities. The real narrative centers on how NVIDIA plans to defend its multi-trillion-dollar valuation against competitors attempting to commoditize artificial intelligence (AI) infrastructure.
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NVIDIA Uses MediaTek to Extend Its AI ReachNVIDIA has historically faced vulnerabilities in ultra-low-power edge computing. To address this blind spot, NVIDIA executed a roughly $3.5 billion convertible bond investment in Taiwanese chipmaker MediaTek. Rather than designing standalone mobile processors from scratch and fighting for market share, NVIDIA is embedding its architecture directly into MediaTek’s large system-on-chip footprint and custom silicon capabilities.
This partnership deploys the NVLink Fusion platform alongside the joint RTX Spark and DGX Spark personal computer chips. By merging MediaTek's low-power integration expertise with NVIDIA's heavy-duty graphics processing units, NVIDIA can extend its reach deep into local artificial intelligence computing and automotive platforms.
The move encourages custom accelerator developers to utilize NVIDIA interconnects. By establishing this beachhead, NVIDIA is locking out competitors such as Advanced Micro Devices Inc. NASDAQ: AMD and Intel Corporation NASDAQ: INTC from critical edge-to-cloud infrastructure pipelines. The capital injection secures supply chain loyalty while funding the specific research and development required to keep pace with localized computing threats. Investors might view this as a highly defensive, cash-rich expansion that extends dominance from the largest cloud providers down to local consumer hardware.
Countering the Custom ASIC ThreatWhile edge computing secures the downstream market, the high-end data center faces a completely different kind of threat. The recent Hot Chips 2026 conference highlighted a glaring vulnerability in hyperscale environments, specifically the immense energy cost of long-context inference and output token generation.
Competitors recognize this bottleneck and are front-running custom silicon designed to minimize inference latency. Systems like the rumored Jalapeño from OpenAI and the CS-4 from Cerebras NASDAQ: CBRS specifically target maximizing output per watt. These innovations could peel hyperscalers away from standard graphics processing unit clusters.
NVIDIA is responding by strategically reviving the Rubin CPX program and deploying the Groq 3 LPX inference accelerator. Originally shelved, supply chain intelligence indicates the Rubin CPX is back in the production pipeline. The hardware is re-architected with 168 GB of next-generation HBM4 memory instead of the standard GDDR7.
To understand why this matters, investors need to look at how large language models process data. The compute-bound prefill phase, where the model reads and comprehends a large prompt, requires radically different hardware optimization than the decode phase, where it generates the answer. By dedicating specific silicon to the prefill phase with upgraded HBM4 memory, NVIDIA is addressing the power-efficiency bottlenecks inherent in complex token generation.
This specialized decoupling may help limit hardware fragmentation. It gives hyperscalers the tailored efficiency they crave without forcing them to abandon the widely adopted CUDA software ecosystem or NVLink architecture. By offering a localized, highly efficient solution within its existing stack, NVIDIA directly answers the threat posed by specialized application-specific integrated circuits without immediately ceding an inch of market share.
Fortress Balance Sheet: Weathering the September StormStrategic expansions require significant capital, and NVIDIA's balance sheet is strong enough to support these moves. With trailing net income surpassing $120 billion and gross margins remaining strong at nearly 64%, NVIDIA possesses the cash flow to pressure competition through sheer scale.
Management recently authorized an $80 billion share repurchase program. This aggressive buyback acts as support for the equity against near-term volatility. When an enterprise with a forward price-to-earnings ratio sitting around 24 commits $80 billion to buy its own stock, it signals internal conviction that the current valuation may not fully reflect long-term cash flow generation.
Current Price$220.60High Forecast$515.00Average Forecast$324.23Low Forecast$218.00NVIDIA Stock Forecast Details
Forward guidance for fiscal year 2028 effectively challenges the bearish peak-artificial-intelligence narrative. NVIDIA expects roughly 70% revenue growth for fiscal 2028, underscoring sustained hyperscaler capital expenditures. The recent roughly $35 billion cloud computing agreement between Anthropic and NVIDIA-backed Lambda provides another sign of demand. This heavy capital commitment highlights deep downstream demand for computing power beyond traditional, centralized cloud providers, demonstrating that the customer base for advanced graphics processing units is actively broadening.
Investors cannot ignore the near-term friction. Higher supply costs are projected to pressure gross margins in the coming quarters. Reports that NVIDIA paused parts of an AI cloud financing program have triggered renewed market scrutiny of circular transactions and potential antitrust exposure.
These fundamental risks are compounded by a highly sensitive macroeconomic environment. Rising expectations for a September Federal Reserve rate hike, coupled with historically weak September seasonality for technology equities, help explain recent localized pullbacks.
A potential rate hike increases the cost of capital across the broader technology sector, which often compresses valuation multiples for high-growth equities regardless of their individual earnings power. Tracking data also indicates a recent uptick in insider selling among corporate directors. While that can be standard liquidity planning following an earnings blackout period, the volume of these distributions highlights a cautious internal outlook regarding short-term price action.
The Endgame: The Next AI SupercycleNVIDIA is transitioning from rapid, undisputed hyper-growth into a phase of more deliberate territorial defense. The dual-pronged strategy of capturing the edge with MediaTek and defending the data center with the Rubin CPX and Groq 3 LPX proves that leadership understands the evolving hardware landscape. NVIDIA is actively neutralizing threats before custom silicon can achieve meaningful market penetration.
Those looking to allocate capital might view the current setup objectively. The long-term fundamentals remain supportive, driven by heavy share repurchases and accelerating future revenue targets. The forward valuation suggests the equity is reasonably priced relative to its growth trajectory and cash position.
Cautious investors may want to observe how the broader market digests upcoming Federal Reserve policy decisions and September seasonality trends before taking a large position. For those with a longer time horizon, NVIDIA's aggressive moves to fortify its hardware moat present a compelling case that its dominance in the artificial intelligence infrastructure market can remain durable, even as custom silicon becomes a more credible competitive threat.
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ARS Wealth Advisors Group LLC increased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 8.3% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 79,839 shares of the computer hardware maker’s stock after acquiring an additional 6,124 shares during the period. NVIDIA comprises approximately 1.3% of ARS Wealth Advisors Group LLC’s holdings, making the stock its 23rd largest holding. ARS Wealth Advisors Group LLC’s holdings in NVIDIA were worth $15,975,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Defender Capital LLC. increased its stake in shares of NVIDIA by 0.7% in the second 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 in the last quarter. Spectrum Financial Alliance Ltd LLC lifted its position in NVIDIA by 3.8% during the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock worth $243,000 after buying an additional 51 shares in the last quarter. LMG Wealth Partners LLC grew its holdings in NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after acquiring an additional 53 shares during the last quarter. Vision Financial Markets LLC grew its holdings in NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after acquiring an additional 53 shares during the last quarter. Finally, JGP Global Gestao de Recursos Ltda. increased its position in NVIDIA by 2.3% in the 4th quarter. JGP Global Gestao de Recursos Ltda. now owns 2,402 shares of the computer hardware maker’s stock valued at $448,000 after acquiring an additional 55 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.
NVIDIA Trading Up 1.4% NASDAQ:NVDA opened at $220.60 on Tuesday. The firm has a market capitalization of $5.32 trillion, a price-to-earnings ratio of 27.89, a PEG ratio of 1.71 and a beta of 2.23. The business’s 50-day moving average price is $208.33 and its two-hundred day moving average price is $201.08. 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 Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released 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. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.05 EPS. On average, equities analysts expect that NVIDIA Corporation will post 9.1 earnings per share for the current year. NVIDIA declared that its Board of Directors has authorized a share buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.
NVIDIA Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given 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 of this dividend is Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
Insider Buying and Selling at NVIDIA In related news, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,400,500 shares of company stock worth $299,259,265 in the last ninety days. 3.94% of the stock is currently owned by company insiders.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA announced a $3.5 billion investment in MediaTek and expanded their partnership across data-center, edge-computing and automotive AI. MediaTek will adopt NVIDIA’s NVLink Fusion technology to develop custom chips that can connect to NVIDIA-based AI systems, potentially broadening NVIDIA’s platform and ecosystem reach. NVIDIA MediaTek partnership Positive Sentiment: Anthropic reportedly signed a $35 billion cloud agreement backed by NVIDIA, reinforcing demand for NVIDIA-powered AI infrastructure and supporting the broader investment case for continued hyperscaler and AI-cloud spending. Anthropic cloud deal Positive Sentiment: Analysts raised price targets while retaining Buy ratings, including China Renaissance at $330 and Phillip Securities at $300. Recent commentary highlights NVIDIA’s strong cash generation, integrated AI platform and management’s expectation for roughly 70% revenue growth in fiscal 2028. China Renaissance price target Positive Sentiment: ARK Invest, led by Cathie Wood, purchased approximately $53 million of NVIDIA stock following the earnings-related selloff, providing a notable vote of confidence from a prominent growth investor. ARK Invest NVIDIA purchase Neutral Sentiment: NVIDIA’s exceptional demand is exposing supply-chain bottlenecks in memory, networking, optical components, power and copper. Higher input costs and supply commitments could pressure gross margins even as they signal that customer demand remains ahead of available capacity. Neutral Sentiment: Broadcom’s VMware Cloud Foundation validated NVIDIA’s Nemotron models for private-cloud deployment, supporting enterprise adoption and data-sovereignty use cases, though the announcement provided no specific customer or revenue figures. AI models validated on VMware Cloud Foundation Negative Sentiment: A reported NVIDIA program designed to participate in cloud profits from chips it had already sold was paused after internal concerns about potential antitrust exposure, highlighting regulatory risk around NVIDIA’s growing influence over AI infrastructure. NVIDIA cloud revenue program Negative Sentiment: Investors also face risks from a possible September market pullback, elevated valuation expectations, insider selling and emerging competition from custom AI chips, including reports of an OpenAI-designed processor. Analyst Ratings Changes A number of brokerages have weighed in on NVDA. Citic Securities boosted their target price on shares of NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research note on Friday, May 22nd. KGI Securities boosted their target price on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Truist Financial upped their price target on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Craig Hallum raised their price target on NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Finally, Morgan Stanley set a $300.00 price objective on NVIDIA and gave the stock an “overweight” rating in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, NVIDIA has a consensus rating of “Moderate Buy” and an average target price of $324.23.
Check Out Our Latest Stock Analysis on NVIDIA
NVIDIA Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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One aspect of market psychology is that investors often think in terms of one quarter at a time. Nvidia (NVDA -1.32%) may have broken this habit in its fiscal 2027 second-quarter report. During the earnings call, management provided something public companies rarely give quite this early: a forecast for next year's growth.
Below, I'll detail why Nvidia's growth is redefining the debate about whether the artificial intelligence (AI) build-out is late-cycle theater or still in the early innings. Moreover, the analysis will touch on two important points that have haunted Nvidia stock for nearly a year: how much of this growth forecast does Wall Street actually believe, and whether Nvidia needs to regain its position in China's market to keep its empire running.
Image source: The Motley Fool.
What was Wall Street expecting for Nvidia's fiscal 2028? Nvidia's preliminary fiscal 2028 outlook is straightforward. Revenue is expected to rise 70% year over year. Chief Financial Officer Colette Kress framed that figure as "supply constrained." Chief Executive Officer Jensen Huang made it clear that demand for the company's processors is growing by more than that. In essence, a 70% growth rate is what Nvidia's supply chain can "confidently deliver," especially with shortages of memory and other parts of the AI chip stack creating bottlenecks to production.
For reference, Wall Street analysts were modeling about 44% revenue growth for Nvidia's fiscal 2028, which begins Jan. 31, 2027. Given the Street's consensus estimate of $397 billion of revenue in fiscal 2027, that implies fiscal 2028 sales of roughly $574 billion. When applying Nvidia's 70% forecast rate to the same starting base, next year's expected revenue sits closer to $675 billion.
Here's where it really gets lucrative: If I use a higher fiscal 2027 revenue figure based on Nvidia's current run rate, the implied sales for next year land closer to $700 billion. In either case, the gap between Wall Street's expectations and Nvidia's new reality is roughly $100 billion in revenue.
What's astounding is that Nvidia is no longer growing off a small base of data center sales. Given its current trajectory, Wall Street must accept that a business already measured in hundreds of billions of dollars of annual sales can go on to add yet another several hundred billion in growth in just a single year. Under these conditions, procuring GPUs is no longer the constraint for AI training and inference. Instead, the pain points revolve around high bandwidth memory, packaging, power supply, and land.
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During the fiscal second quarter, Hopper-architecture products shipped to China accounted for less than 1% of Nvidia's data center revenue. Moreover, these shipments were dilutive to Nvidia's gross margin. Kress made it clear that "given ongoing geopolitical uncertainty, there is no China data center compute revenue in our forward outlook."
Think about that for a minute: Nvidia expects to generate $108 billion in sales in the third quarter, alongside a 70% growth rate in 2028, and the Chinese market is merely an option rather than a core pillar supporting the company's sales foundation. This matters for a few reasons. First, this level of growth, excluding China, discredits a convenient bearish argument that Nvidia would need a large presence in that market to sustain its dominance in AI processors.
Second, and more subtly, Nvidia's growth outlook over the next 18 months underscores that AI labs, neoclouds, enterprises, and sovereign buyers are becoming just as important as the hyperscalers. Kress quantified the non-hyperscale cohort as representing "roughly half of our data center business." When demand for its wares is this broad, the fact that it continues to cede ground in an important market like China is only a disappointment, not a thesis-killer.
Third, Nvidia's position in data centers remains undeniable, despite increasing competition from Advanced Micro Devices and custom silicon designers like Broadcom. Nvidia's outlook suggests the company is still fighting effectively to win incremental server demand in a contested AI infrastructure landscape. A vendor in Nvidia's position does not "need" China the way a competitor like AMD needs to prove it can expand globally at a comparable scale. For Nvidia, China is purely a source of incremental dollars and a strategic hedge, not a key engine powering its future growth.
Is Nvidia stock a good buy? Nvidia stock trades at a forward price-to-earnings (P/E) ratio of about 23. This is a rather modest valuation compared to the highs it reached during the early cycles of the AI revolution. When paired with the company's reaccelerating data center growth, it's hard not to see Nvidia as a terrific value right now.
NVDA PE Ratio (Forward) data by YCharts.
But take a look at Nvidia's price/earnings-to-growth ratio (PEG ratio) as well. The PEG ratio measures a company's price relative to its expected future earnings growth. As a rule of thumb, any positive PEG ratio of less than 1 suggests a stock is undervalued. Currently, Nvidia's PEG is around 0.6. To me, it's clear the market is not paying up for the earnings path that Nvidia's management just outlined.
The takeaway here is simple: Nvidia's multiyear guidance is not a victory lap. It's a declaration that the bottlenecks to the AI build-out revolve around physical components, and that a meaningful return to the Chinese market is not something that the company would need in order to achieve a financial performance that the Street is under-predicting by a mile. At a forward earnings multiple that has somehow compressed even as the company's earnings power continues to compound, Nvidia stock is still worth owning.
Buy Nvidia (NVDA). Earnings/guidance momentum is the core: revenue +106% YoY to $86B, current-quarter revenue guide to $108B, and management’s conservatism implies upside beyond that. Add the $35B Anthropic-related GPU buildout via Lambda/Hut 8 (350MW) as a near-term demand signal. Valuation is the kicker: forward P/E ~23 vs its 5-year average ~42, so the market is still underpricing the growth. Technicals support continuation: above 50-week EMA, Supertrend, and the rising trendline—setup for a push toward $300.
Key Risk: Guidance disappoints next quarter and the market decides the current growth run-rate can’t be sustained.
NVDA buy on buybacks
Buy NVDA specifically for the EPS/float effect from buybacks. With $26B repurchased in Q2 and $99B remaining, the share count is shrinking (24.15B vs 25.06B in 2022), mechanically lifting EPS even if revenue growth merely matches guidance. This amplifies any upside surprise from the current-quarter guide and keeps the stock bid during pullbacks.
Key Risk: Regulatory or legal action forces Nvidia to slow/stop buybacks, removing the EPS support.
Nvidia stock has pared back some of the gains from last week's strong earnings. Shares soared to $230 before pulling back to $220 today, even as several major announcements hit the wires. Several key catalysts now point toward the potential for a strong rebound.
Nvidia, the biggest company in the world, has made some important announcements that may boost its stock in the near term. One of the deals came today, when Lambda, a company that Nvidia backs, announced a $35 billion deal with Anthropic. This project is being developed by Hut 8, will have 350 megawatts, and will use Nvidia GPUs and other products.
In addition to this, Nvidia announced strong financial results last week. Its revenue jumped by 106% in the last quarter to $86 billion and boosted its forward guidance. It also predicted that its revenue will jump to $108 billion in the current quarter.
Based on its historical performance, this means that its revenue will be higher than its guidance. In this case, chances are that it will make over $112 billion since management tends to be highly conservative. The same will happen in terms of its earnings.
Further, and most importantly, the company’s guidance was stronger than expected. Its revenue for the next financial year is expected to grow by 77%, higher than the 44% that analysts were expecting.
This growth has helped the company to repurchase millions of shares. It repurchased shares worth $26 billion in the second quarter and has $99 billion remaining in its obligation. Nvidia has reduced its outstanding shares to 24.15 billion, much lower than 25.06 billion in 2022.
Share repurchases helped to boost a company’s performance by increasing the earnings-per-share (EPS). This happens as the company reduces the number of shares in circulation, which also boosts the amount of dividends they receive.
In the perfect space, a company like Nvidia that is growing this fast and has a strong market share should have a high valuation multiple. This is not the case with Nvidia, a company whose valuation metrics are in line with the broader market.
The company has a forward price-to-earnings ratio of 23, much lower than its five-year average of 42. This multiple is also in line with that of the S&P 500 Index.
At the same time, the company has a Rule of 40 multiple of 128% based on the free cash flow margin. Based on the operating and net margins, the multiple is 172% and 168%, respectively. A company is said to be cheap whenever the multiple is above 40%.
These fundamentals explain why analysts are highly bullish on the company, especially after the last earnings report. The average estimate among analysts is $322, up by nearly 50% from the current level. The most bullish analyst is Raymond James’ Simon Leopold who has a target of $515.
Nvidia stock chart | Source: TradingView
The weekly chart shows that Nvidia shares have stalled in the past few weeks. It has remained above the 50-week exponential moving average (EMA) and the Supertrend indicator.
The stock is also above the ascending trendline that links the lowest level since May 5 this year. Therefore, the most likely scenario is where the stock continues rising, potentially to the psychological level of $300.
ANN ARBOR, Mich.--(BUSINESS WIRE)-- #AVAC2026--The Association for Advancing Automation (A3) today announced the speaker lineup and agenda for its Advanced Vision & AI Conference, September 23–24, 2026, in Santa Clara, California. Featuring experts from Waymo, NVIDIA, Tesla, Intrinsic, GE Vernova, Intel, FANUC, Cognex, Siemens Digital Industries, and more, the two-day conference will focus on how vision and AI technologies are being deployed across manufacturing and other industrial environments. Regis.
In late August and early September, Wall Street analysts issued a series of notes reaffirming their confidence that Nvidia (NASDAQ: NVDA) will enjoy a stock market acceleration relative to its 2026 performance over the next 12 months.
To begin with, Baird analyst Tristan Gerra highlighted the allegedly strong demand for Nvidia’s upcoming Grok 3 LPX and the latest $35 billion compute agreement between Anthropic and Lambda, which is backed by the semiconductor giant.
Given the setup, the Wall Street expert estimated on August 31 that the blue-chip chipmaker will retain its leadership, making NVDA shares a ‘Buy’ with a $500 price target.
Additionally, Phillip Securities’ Yik Ban Chong voiced his bullishness on the same day by not only providing a ‘Buy’ recommendation for Nvidia stock, but also by increasing the 12-month forecast from $285 – 29.09% above the latest close at $220.78 – to $300 – a 35.89% upside.
Lastly and most recently, Raimo Lenschow, an analyst from Barclays, published his own ‘Buy’ rating on September 1, though it was accompanied by this week’s lowest price target for the next 12 months: $275.
Wall Street sets Nvidia stock price for the next 12 months Elsewhere, Nvidia has so far retained the universal optimism of Wall Street analysts as, among the thirty-one revisions published within the last three months, there are no ‘Neutral’ or ‘Sell’ recommendations, per the data Finbold retrieved from TipRanks on September 1.
Wall Street predicts Nvidia stock price for next 12 months. Source: TipRanks The average price target also appears to estimate significant acceleration for NVDA stock in the next 12 months relative to the previous 52 weeks. Specifically, Nvidia rallied 29.28% in the previous year to its latest close at $220.78 but is expected to soar 48.31% to $327.45 by September 2027.
Nvidia stock price one-year chart. Source: Google Why top Nvidia bullish catalysts could also drive NVDA stock lower Meanwhile, it is worth noting that much of the latest optimism is driven by the exceptionally strong results unveiled in the latest quarterly report, the $500 billion memorandums of understanding (MoUs) for funding artificial intelligence (AI) infrastructure, as well as major recent acquisitions.
Still, these bullish catalysts also revealed potential risks or can themselves be interpreted as risks. The August filing also disclosed significant client concentration; the $500 billion MoU press release also featured a disclaimer that the program might come to naught; and the Hugging Face purchase can be seen as the semiconductor giant becoming a buyer of last resort for an unsellable company.
Featured image via Shutterstock
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Marvell Technology dropped nearly 10% the same morning NVIDIA added $442 billion in a single session, and Jim Cramer thinks that selloff is the setup, not the warning sign. One date in October could prove him right or very wrong.
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The morning of Friday, Aug. 28, delivered one of the strangest split screens of the AI trade so far. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) added roughly $442 billion in market cap in a single session, the second largest one-day gain ever, trailing only Microsoft‘s (NASDAQ:MSFT) $450 billion. Meanwhile Marvell Technology (NASDAQ:MRVL), the other big AI chipmaker to report the same week, was down 10.26% intraday to $216.68 despite a beat-and-raise quarter.
Jim Cramer’s message to viewers: Do not bet against it before the Oct. 6 analyst day.
Why Marvell Sold Off on a Blowout Quarter Marvell reported record Q2 fiscal 2027 revenue of $2.739 billion, up 36.55% year over year, with Data Center revenue of $2.1715 billion, up 46%. Management guided fiscal 2028 data-center growth to more than 60% year over year and said custom revenue will “more than double” in fiscal 2028.
The problem is timing. On Squawk on the Street, David Faber laid out the math: the expanded Google custom-silicon agreement annualizes to roughly $18.5 billion a year, but Marvell acknowledged most of that revenue is not in the plan until 2029. Faber also pointed to Marvell’s August 18 8-K detailing warrants for Alphabet (NASDAQ:GOOGL) to purchase 58.9 million shares of common stock at $206.58, tied to future revenue milestones. Matt Murphy told analysts, “Most of this is comprehended already in next year. The big impact would be, you know, in 29 and beyond.”
Cramer’s Case: Don’t Fade the October 6 Catalyst Cramer’s argument is that delayed revenue still lands, and the thesis holds as long as the ramp arrives. He told viewers not to bet against Marvell going into the October 6 analyst meeting, citing CEO Matt Murphy’s track record of “compelling” presentations, Murphy’s $1 million insider buy, and Murphy’s line: “I am the signal. They are the noise”. Murphy’s own words back the setup: “AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027.”
The macro backdrop helps. NVIDIA guided Q3 revenue to $108 billion and fiscal 2028 growth of approximately 70%, with Jensen Huang calling supply a bottleneck. Marvell sits inside that ecosystem through NVLink Fusion and combined optical solutions with UAL and ESUN switches. The traits that showed up early in past monster tech runs are the same ones we cataloged in a free Next Nvidia playbook.
What to Watch Next Context matters. Marvell is still up more than 136% year to date and more than 227% over one year. This is a pullback inside a monster run. Cramer acknowledged the binary risk plainly: “Marvell is a very expensive stock unless everything works.” The October 6 Investor Day is where Murphy is expected to reset the long-term target model and detail revenue through fiscal 2029 and beyond. That is the date to circle.
Contact [email protected] for any questions or corrections.
Wall Street's average target already implies 40% upside for Nvidia, yet one scenario pushes far beyond what analysts have priced in. The math is simpler than you'd expect, and the catalysts are already in motion.
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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) has quietly rebuilt its momentum in 2026. Shares are up 16.79% year to date and 14.49% in the past month alone, closing at $217.55 on August 28.
The August 26 earnings report reset the bull narrative: $96.22 billion in revenue, growth of 105.85% year over year, and Data Center revenue of $89.02 billion. CEO Jensen Huang framed the moment plainly: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” Let’s walk through what NVIDIA needs to do to hit $350 per share in 2027.
Wall Street Is Bullish, But $350 Sits Above Consensus The Street’s average 12-month target is $305.79, with 48 Buy and 10 Strong Buy ratings against just 1 Sell. That target implies roughly 40% upside from here, so analysts are already leaning aggressively bullish. Analysts have yet to price in management’s guidance that fiscal 2028 revenue will grow “approximately 70%” against a backlog Huang called “supply-constrained.”
NVIDIA has now beaten EPS estimates for five consecutive quarters, most recently by 6.29%. When a company routinely outruns forecasts and guides above them, reported numbers tend to come in higher than the current model.
Here’s the Math Behind $350 Per Share NVIDIA trades at a forward P/E of 26 on an EPS base of $7.91. If the stock hits $350, it would trade at roughly 35 times trailing earnings, a premium to the S&P 500’s forward multiple near 22 but well inside NVIDIA’s own historical range.
The path only requires forward EPS to reach roughly $10, which lines up with the model’s forward EPS of $9.91. Multiply that by a 35x multiple and you land at $350.
What could push NVDA to $350?
Vera Rubin ramp: Management expects it to be “the fastest product ramp in NVIDIA’s history,” with per-gigawatt revenue rising from $25 billion on Blackwell to $40 billion on Vera Rubin. Hyperscaler capex: Top-five hyperscaler spending is projected at “nearly 800 billion in 2026 and 1.3 trillion in 2027.” Frontier lab financing: Partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR are set to mobilize “over $500 billion of third-party capital”. Buybacks: $99 billion remains authorized, with $26 billion returned in Q2 alone. NVIDIA’s History Says $350 Is Well Within Range A move from $217.55 to $350 requires roughly 61% appreciation. NVDA has posted major annual gains repeatedly in prior cycles. Over five years, the stock is up 864.36%.
At a $5.25 trillion market cap, repeating triple-digit gains is harder, but a 60% year is squarely in character.
Bottom Line on $350 Reaching $350 requires roughly 61% upside, versus Wall Street’s implied 40% and the internal bull-case forecast of $342.77 by August 2027.
Supply is a governor and China Data Center revenue is excluded from guidance, but with fiscal 2028 revenue guided to approximately 70% growth, Vera Rubin in full production, and five straight beats behind them, the blueprint is clear. Returns like these shouldn’t be expected every year, but the path to $350 in 2027 is drawn.
Contact [email protected] for any questions or corrections.
Key Takeaways Shipping and crypto ETFs led August gains amid geopolitical and market tailwinds. Gold, silver, copper and uranium ETFs rallied on supply and safe-haven demand. Biotech and cloud software ETFs rebounded as AI-related concerns eased. Wall Street delivered an upbeat August. The S&P 500 advanced more than 2.5% in August, while the Nasdaq gained more than 3%. The Dow climbed about 1.3% for the month.
However, Wall Street closed the month on a weaker note as renewed U.S.-Iran tensions reignited concerns about energy prices, inflation and the Federal Reserve's interest-rate path. Let’s take a look at the key events of the month.
Oil Up for the MonthIn late August, the United States attacked Iranian rocket launchers that were preparing to deploy mines in the Strait of Hormuz. The strike marked the first direct U.S. attack on Iran in several weeks and raised fears of another escalation in the region.
The prospect of disruptions around the critical oil-shipping route pushed crude prices higher. Brent crude futures climbed above $88 a barrel. United States Brent Oil Fund LP (BNO - Free Report) has added about 4.9% over the past one month (as of Aug. 31, 2026).
Fed Outlook Turns More HawkishThe latest geopolitical developments come as investors are already reassessing the Fed's interest-rate outlook. Fed Chairman Kevin Warsh struck a hawkish tone in his Jackson Hole speech last week, warning that inflation remains too elevated and indicating that the Fed still has more work to do.
The comments, combined with the latest jump in oil prices, prompted traders to raise their expectations for a 25-basis-point rate increase in September. The implied probability climbed to about 62% over the weekend, compared with roughly 40% a week earlier, at the time of writing.
Treasury Department to Buyback Long-Term BondsIn late August, the Treasury Department announced its decision to double the maximum size of its bond buyback operation to at least $4 billion from $2 billion. The move is aimed at containing rising bond yields.
Although the purchases are small compared with the broader Treasury market, they sent a strong signal to investors and gave fresh momentum to the debasement trade (read: GLD, IBIT and Other ETFs to Play Debasement Trade).
U.S. Dollar Under Pressure in AugustThe U.S. dollar fell to a three-month low against the euro in mid-August, as concerns grew that the U.S. Treasury’s plan to expand buybacks of longer-dated government debt could put additional pressure on the greenback.
Note that the U.S. dollar fund Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) , which offers direct exposure to the U.S. dollar, was under pressure between Aug. 18 and Aug. 28, 2026.
Jump in CryptocurrenciesCrypto-related shares have rallied. Bitcoin, which is often viewed as an alternative to traditional fiat currencies, extended its rally. Bitcoin soared about 23% over the past month and crossed the $80K-mark in late August. Ethereum added about 32% over the past month (read: Bitcoin Reclaims $69K on Treasury Move: More ETF Upside Ahead?).
A White House meeting involving President Trump and cryptocurrency executives revived expectations for progress on the CLARITY Act and a more favorable U.S. digital-asset framework. The move and the dollar debasement trade led to the spike in cryptocurrencies. iShares Bitcoin Trust ETF (IBIT - Free Report) is up about 23.5% over the past one month, while iShares Ethereum Trust ETF ETHA has advanced about 32.7%.
AI & Software Shares RallyNVIDIA (NVDA - Free Report) delivered upbeat results and projected about 70% revenue growth in fiscal 2028, well above Wall Street’s 43% forecast. Meanwhile, Salesforce (CRM - Free Report) surprised skeptics with its AI strength after launching Claudeforce with Anthropic.
Salesforce also delivered a beat-and-raise quarter, sending shares up nearly 23% Thursday — their best day since 2020 and second-biggest gain since its 2004 IPO, per CNBC.
Fears that AI would disrupt traditional business models have eased, benefiting SaaS providers that were hit hard earlier this year as investors questioned demand for seat-based subscriptions (read: Software Stocks & ETFs: Is the AI Sell-Off Over?).
Top-Performing ETF Areas of AugustBelow we highlight a few top-performing ETF areas of the past one month (as of Aug. 31, 2026
).
Shipping Breakwave Tanker Shipping ETF BWET – Up 76.7%
The Middle East conflict and the closure of the Strait of Hormuz have disrupted key shipping routes, driving a sharp surge in freight rates. This has strengthened the investment case for BWET.Plus, rising demand in emerging economies and limited investment in new tanker capacity are other positives.
Cryptocurrency Cryptocurrencies ruled the month of August. Simplify Bitcoin Strategy ETF MAXI is up 48.7%, 21shares Hyperliquid ETF THYP is up 44.5%. Solana ETF SOLZ has gained 39.7% while Bitwise XRP ETF XRP is up 28.7%.
Gold MinersGold bullion ETF SPDR Gold Trust (GLD - Free Report) has jumped about 9.9% over the past month (as of Aug. 31, 2026). Safe-haven demand and a flat greenback have boosted gold prices in the month. As mining ETFs often act as leveraged plays of the underlying metal, Global X Gold Explorers ETF (GOEX - Free Report) has surged about 37% over the past month.
Silver MinersSilver bullion ETF iShares Silver Trust SLV has gained about 14.6% over the past one month. The U.S. Treasury's decision to conduct bond buybacks triggered a massive bid for precious metals. SLV has a massive industrial usage also, including AI applications. Global X Silver Miners ETF (SLVP - Free Report) added about 34.3%
Biotech ARK Genomic Revolution ETF (ARKG - Free Report) added 25.7%. ARKG’s August surge was driven mainly by a biotech risk-on rally. Moderna’s personalized cancer-vaccine breakthrough on August 19 acted as a cornerstone for the entire space. Strong performance in major ARKG holdings like 10x Genomics, Twist Bioscience, and Tempus AI boosted the fund. Strength in AI-driven precision medicine, sequencing, single-cell analysis and molecular diagnostics, along with upbeat earnings, led to the rally in ARKG.
Copper MinersGlobal X Copper Miners ETF (COPX - Free Report) advanced about 17%. The largest near-term catalyst was the threat of future U.S. tariffs on refined copper. Traders rushed to ship massive volumes of refined copper into U.S. COMEX warehouses to get ahead of a potential 15% tariff slated for January 1, 2027. Production interruptions in major miner Chile is another reason. Copper demand from AI data centers also rose.
CannabisAdvisorShares Pure Cannabis ETF (YOLO - Free Report) is up about 23.4% over the past one month. According to data from Fortune Business Insights, the global cannabis market is projected to reach about $1.43 trillion by 2034 from $137.67 billion in 2026.In a landmark policy shift, the Trump administration reclassified medical marijuana from a Schedule I to a Schedule III controlled substance in late April 2026, marking the most significant federal reform on cannabis in more than half a century.
Uranium MinersSprott Junior Uranium Miners ETF (URNJ) has added 15.7%. URNJ rallied in August as investors rotated back into junior uranium miners as the uranium market began to look tighter and nuclear-demand expectations strengthened. Kazakhstan makes up roughly 39% of global primary uranium production, so any reduction in its expected output has an outsized market impact.
Kazatomprom recently cut its 2026 production target by 9.4%, per a source. Data-center electricity demand linked to AI infrastructure is also driving uranium prices higher.
Cloud Computing WisdomTree Cloud Computing Fund (WCLD - Free Report) has tacked on 17.1% gains. WCLD rallied in August because investors rotated back into cloud software and AI beneficiaries after strong earnings reduced concerns that AI spending would hurt traditional software companies. Hyperscalers' earnings also confirmed continued strength in cloud demand.
"This time is different," explained Nvidia (NVDA +1.49%) CEO Jensen Huang in a recent interview, in response to concerns about a pending artificial intelligence (AI) downturn.
And after Huang announced blowout quarterly numbers on Wednesday, it looked for a hot second as if things really were different. On Thursday, it seemed as if investors were finally rewarding the tech giant for its incredible outperformance, rather than sending shares lower, which is what happened after each of Nvidia's last four consecutive blowout earnings reports.
Unfortunately, it didn't last. By the end of the day on Friday, Nvidia's shares had fallen 5.5%. That leaves them barely above their pre-earnings close.
Why can't Nvidia seem to catch a break from the market? And is Huang right that things are about to change in a big way for Nvidia, and for AI in general? Here's what investors need to know.
Image source: Nvidia Corporation.
Nvidia's incredible quarter Nvidia really couldn't have done much better in its second quarter. Revenue more than doubled from the prior year to $96.2 billion, beating expectations. Adjusted earnings per share jumped 120% year over year to $2.22, also well above the anticipated $2.09.
Adjusted net income came in at $54 billion. That's a year-over-year increase of $29.2 billion, which -- as my colleague Jeremy Bowman pointed out on Wednesday -- is roughly equal to Apple's entire Q2 net income. In other words, Nvidia added an Apple's worth of profitability to its results in one year.
But the biggest news, which seemed to have pushed the stock higher after the report was released, was the company's projection of 70% revenue growth in 2027, smashing analysts' forecast of 44%. Nvidia's shares opened 6% higher on Thursday, and surged to an intraday high of $230.39 -- a 9.9% gain.
The fact that Nvidia's stock has already given up almost all of its post-earnings gains shows how skeptical investors are of continued AI investment. So, why does Jensen Huang think this time is different for Nvidia?
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Is it really all that "different"? One of the most dangerous phrases in investing is "this time is different." Research shows that investors often overestimate the impact of a potentially disruptive technology on an industry and underestimate how long it will take for new technologies to deliver significant returns on investment.
But Huang thinks we are now hitting an inflection point in AI technology that will change how computing functions, causing a major upheaval in the demand cycle.
"This time is different because this is not demand-driven. This time is different because it's not seasonal," he explained. "This is industrially driven, meaning the fundamental technology of computers is changing."
Image source: Getty Images.
Huang believes that while computer infrastructure upgrades have previously been cyclical -- largely consisting of swapping out aging hardware for newer models of the same type -- AI represents a fundamental shift in how computers function. It will require systemwide upgrades and exponentially more infrastructure to handle the massive computer workloads AI requires.
If he's correct -- and Nvidia's results have borne out his thesis so far -- Nvidia looks incredibly undervalued at its current price, and investors may kick themselves for selling the stock after the last five earnings reports instead of buying more.
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Logistics company OneRail is launching a platform using Nvidia's artificial intelligence software to help retailers make faster decisions on the most efficient delivery options at scale, CNBC has learned.
The new platform, called OmniStar, allows retailers to use AI to evaluate all of their delivery options and identify the best one for each individual order, using OneRail's proprietary data.
The last-mile delivery company told CNBC the new platform will allow smaller companies to deliver at scale and improve margins to compete with the retail giants of the world, including Amazon and Walmart.
As e-commerce grows, retailers have had to keep up with surging demand and invest in nimble supply chains to optimize their efficiency. But those manual processes are often fragmented across the retailer and the logistics businesses.
"If you don't have the ability to make lightning-fast decisions, you're giving up margin," OneRail CEO Bill Catania told CNBC. "Last-mile fulfillment is expensive."
Where choosing the best routing for a package may have previously taken 20 minutes, OneRail said its platform can do it in two and a half minutes leveraging AI. That time saved means retailers can operate larger, faster and more precise supply chains, Catania said.
"That's where the artificial intelligence comes in. It's making those kinds of decisions extremely rapidly, and so to do that, that's where the Nvidia hardware and the software comes in and really makes this thing work at scale," said David Daeschler, the head of AI at OneRail.
Daeschler said the company began partnering with Nvidia three years ago to explore ways to incorporate AI into the logistics process.
"The result is a real-time decision layer that can route an order to the right carrier and delivery mode at the right cost, rather than relying on static rules or manual planning," said Azita Martin, Nvidia's vice president and general manager of retail and consumer packaged goods.
Catania said OneRail's proprietary data, which includes a network of more than 12 million drivers and over 1,000 logistics partners, is being used to train the AI on the most efficient routes and delivery options.
"It's for the benefit of them and us: We operate more efficiently. They save money and provide a better customer experience," Daeschler said.
The company told CNBC its platform has already been deployed with some customers, including a large tire distributor that saw OmniStar save the company a run rate of $40 million over three years because it's able to use its resources more efficiently.
It's also estimating the platform will surpass $6 billion in gross merchandise volume in the fourth quarter.
Nvidia's Martin said the platform will allow retailers to make much faster decisions.
"For retailers, the bigger value is the ability to evaluate more scenarios, respond more quickly as conditions change and improve delivery economics without sacrificing service," Martin said.
OneRail said the platform could help smaller retailers compete more effectively on delivery speed and efficiency.
OneRail announced a partnership earlier this year with FedEx to bring same-day delivery services to all of its customers, joining a race of retailers trying to offer their customers the best and fastest delivery options. That partnership will now allow OneRail to better work with smaller businesses as well, Catania added.
"We're kind of doing for delivery what ChatGPT and Anthropic have done for words – it all works the same way," Daeschler said. "They give people more access to knowledge. We're giving people access to being able to do delivery in a way that's affordable. … That's all done based on original models, training on data that we have, just like words on the internet."
Despite Nvidia Corp.’s (NASDAQ:NVDA) massive second-quarter earnings blowout, the BlackRock Investment Institute is urging investors to become more selective within AI as higher interest rates make the capital-intensive buildout more expensive and hyperscalers increasingly turn to debt.
As hyperscalers aggressively build out AI infrastructure, BlackRock is urging investors to look beyond the AI model race and focus on scarce physical bottlenecks such as chips, power and data-center infrastructure.
The $100 Billion Debt WarningIn its latest weekly commentary, BlackRock highlighted growing financial strain downstream in the AI ecosystem. The firm warned that hyperscalers are running down their cash reserves and leaning heavily on debt markets. “U.S. hyperscaler investment-grade bond issuance has topped $100 billion this year, more than twice the 2025 total,” the report noted.
Because of higher interest rates and massive capital requirements, BlackRock advises investors to “look beyond the AI model race for more opportunities as capital gets more expensive.”
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The Nvidia ContrastThis cautionary stance stands in stark contrast to Nvidia’s record-breaking momentum. The semiconductor giant just reported second-quarter fiscal 2027 revenue of $96.2 billion, up 106% from a year ago, with Data Center revenue jumping 117% to $89.0 billion.
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Nvidia CEO Jensen Huang emphasized the relentless demand for infrastructure during the earnings call. “The AI infrastructure buildout is at full steam,” Huang declared. He noted that as AI becomes more productive, “compute is revenue” for cloud providers.
Time to Pivot to BottlenecksTo navigate this new economic regime, BlackRock suggests a targeted strategy. The firm urged investors to “stay selective within AI and track where value is accruing.”
Rather than betting on software or hyperscalers burdened by debt, BlackRock is shifting focus to the scarce resources required for the AI buildout. The firm observed that “companies tied to scarce AI bottlenecks – including power, chips and data center infrastructure – are outperforming those further downstream.”
Potential beneficiaries of these bottlenecks include nuclear and power companies such as Constellation Energy Corp. (NASDAQ:CEG) and Bloom Energy Corp. (NYSE:BE), liquid cooling leaders like Vertiv Holdings Co. (NYSE:VRT), and essential memory suppliers like Micron Technology Inc. (NASDAQ:MU) and SanDisk Corp. (NASDAQ:SNDK).
By targeting these fundamental bottlenecks, investors can capitalize on Nvidia’s momentum while avoiding the mounting debt risks in the broader AI space.
How Has Nvidia Performed in 2026?At the last check, the NVDA stock was trading 0.34% lower in premarket trading on Tuesday. It was up 18.38% year-to-date, advanced by 26.75% over the last year, and rose 24.60% over the last six months. It closed 1.48% higher at $220.78 per share on Monday.
Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the short, long, and medium terms, with a solid growth score.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Retail investors have been piling into Nvidia for 15 straight trading sessions, and after a quarter that shattered nearly every estimate on the board, Wall Street is asking whether the buying frenzy has any ceiling at all.
Wall Street has a saying: everyone loves a winner. Right now, no name is winning like NVIDIA (NASDAQ:NVDA | NVDA Price Prediction). After the chipmaker delivered a record quarter last week, retail traders are hitting the buy button with a persistence rarely seen even in this cycle.
According to JP Morgan Equity Strategy & Quantitative Research, retail investors bought roughly $250 million in Nvidia shares on Wednesday, their third-largest daily purchase since mid-May. That extended the buying streak to 15 consecutive trading sessions, over which retail scooped up more than $2.5 billion in NVDA. Zoom out and the picture is even more lopsided: retail has bought over $30 billion in Nvidia stock over the past 12 months, the most among any Magnificent 7 name.
Blowout Numbers Set the Table The buying followed an earnings report that beat on almost every line. Q2 FY2027 non-GAAP EPS came in at $2.22 against a $2.0887 consensus, while revenue of $96.22 billion grew 105.85% year over year. Data Center revenue reached $89.023 billion, up 117%, with Networking alone climbing 138%. It was Nvidia’s fifth consecutive quarter topping estimates.
CEO Jensen Huang framed the moment bluntly on the call:
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
CFO Colette Kress added that Nvidia expects to grow revenue by approximately 70% in fiscal 2028, calling it “a supply-constrained outlook.” Q3 guidance of $108.0 billion, plus or minus 2%, excludes any China Data Center compute revenue.
Price Action Is Rewarding the Story Shares closed at $220.78 on August 31, up 5.9% in a week and 9.98% in a month. Earnings day itself delivered a 8.74% pop, the strongest post-earnings reaction on file and a sharp break from the historical average day-of change of 0.14. Over five years, NVDA is up 887.01%.
Reddit reflected the euphoria. Sentiment on August 27 hit 67, labeled bullish, with activity registering 61 (high). One popular wallstreetbets thread, “Nvidia earnings proved 2 things again…”, drew nearly 1,083 upvotes. Options positioning is measured rather than manic, with a full-chain put/call ratio of 0.61.
What to Watch Next Bulls have plenty to point to: hyperscaler capex tracking toward $1.3 trillion in 2027, a cloud backlog above $2 trillion, and Vera Rubin generating $40 billion per gigawatt versus Blackwell’s $25 billion. All of that buildout still has to be powered, cooled, and networked by somebody, which is why we profiled seven non-chipmaker suppliers riding the same wave in a free report. Risks remain real. Supply commitments have swelled to $279 billion, DSO stretched to 60 days from 45, and gross margin is expected to bottom in Q4 at 71% to 72% on memory pricing. At a P/E of 44, the stock is priced for continued execution. So far, retail is happy to keep an eye on the stock and keep buying.
Contact [email protected] for any questions or corrections.
Nvidia (NASDAQ: NVDA) will pay its next quarterly cash dividend of $0.25 per share on October 1, 2026, to shareholders of record on September 10, 2026.
Investors holding 100 NVDA shares in their portfolio as of the ex-dividend date will therefore receive $25 on October 1. As such, the payment represents no change from the previous one issued on June 26.
NVDA dividend schedule. Source: Dividend.com Investors looking to generate $100 from the next payment would thus need to hold 400 shares by September 10.
At the last NVDA share closing price of $220.78 on August 31, buying 400 shares would require an investment of approximately $88,312.
Next Nvidia stock dividend is coming on October 1 The chipmaker has already returned approximately $26 billion to shareholders through shares repurchased and cash dividends during the second quarter of fiscal 2027, according to an official press release.
As of the end of the second quarter, the company had approximately $99 billion remaining under its share repurchase authorization.
Nvidia currently has a forward dividend yield of around 0.46% and a forward payout ratio of approximately 6.44%, meaning the company distributes only a small share of its earnings through dividends. However, the company has now raised its dividend for three consecutive years, showing commitment to shareholder returns.
All in all, Nvidia remains primarily a growth stock, with its investment appeal closely tied to the continued expansion of artificial intelligence (AI) demand. Indeed, the chipmaker reported stronger-than-expected fiscal second-quarter results on August 26. Specifically, revenue jumped 106% year over year to $96.2 billion, while adjusted earnings per share rose 120% to $2.22.
For the third quarter, management expects revenue of approximately $108 billion, potentially marking the company’s first quarter with sales above the $100 billion threshold. The company also projects roughly 70% revenue growth for fiscal 2028, supported by continued AI infrastructure spending from hyperscalers, enterprises, and cloud providers.
Featured image via Shutterstock
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Nvidia (NVDA +1.49%) soared 8.7% on Aug. 27, after the company delivered blowout second-quarter fiscal 2027 earnings. Nvidia's market cap closed on Aug. 27 at $5.52 trillion -- nearly a trillion more than the world's second most valuable company, Apple.
Nvidia is so massive that it makes up a significant portion of the S&P 500 (^GSPC -0.33%) and index funds and exchange-traded funds (ETFs) that track the index, like the Vanguard S&P 500 ETF (VOO -0.33%). But investors looking to maximize their Nvidia exposure while keeping a lid on ETF fees may want to take a closer look at Vanguard ETFs that have higher Nvidia weightings than the S&P 500.
Here are five to watch, and one that stands out as the best buy now.
Image source: Getty Images.
Betting big on Nvidia through an ETF wrapper As of July 31, Nvidia made up 7.6% of the Vanguard S&P 500 ETF. But six ETFs hold even larger Nvidia positions. And five have more than 12% weightings in Nvidia.
Vanguard ETF
Nvidia
% of Fund
No. of
Holdings
Expense
Ratio
Vanguard Information Technology ETF (VGT +0.35%)
17.2%
319
0.09%
Vanguard Russell 1000 Growth ETF (VONG +0.01%)
14.6%
370
0.06%
Vanguard S&P 500 Growth ETF (VOOG -0.26%)
13.9%
148
0.07%
Vanguard Morningstar Mega Cap Growth ETF (MGK -0.24%)
13.5%
56
0.05%
Vanguard Morningstar Growth ETF (VUG -0.34%)
12.8%
147
0.03%
Vanguard Morningstar Mega Cap ETF (MGC -0.25%)
8.8%
172
0.05%
Vanguard S&P 500 ETF
7.6%
505
0.03%
Data source: Vanguard. Holdings as of July 31, 2026.
The Vanguard Morningstar Mega Cap ETF is essentially a more concentrated version of the S&P 500, tracking the largest S&P 500 components. But that includes value stocks and growth stocks, which is why the Nvidia weighting is only slightly more than the S&P 500.
The Vanguard Morningstar Mega Cap Growth ETF has the fewest components on this list because it screens strictly for mega cap growth stocks, which leaves out the mega cap value stocks and large cap growth stocks and value stocks that you'll find in an S&P 500 ETF.
The Vanguard S&P 500 Growth ETF filters the S&P 500 for growth stocks, while the Vanguard Russell 1000 Growth ETF screens the Russell 1000 index for growth stocks. The Vanguard Morningstar Growth ETF is very similar to the Vanguard S&P 500 Growth, but it isn't benchmarked to the S&P 500 index, so its components can vary slightly.
The Vanguard Information Technology ETF is a technology sector ETF. So it invests strictly in stocks that are in the tech sector, like Nvidia, Apple, Microsoft, Broadcom, Micron Technology, and Advanced Micro Devices -- leaving out the megacap growth stocks that are in other sectors -- such as Amazon and Tesla (consumer discretionary) and communication sector components Alphabet, Meta Platforms, and Space Exploration Technologies. At 0.09%, the Vanguard Tech ETF has the highest expense ratio of the ETFs discussed. But that's still just $9 per $10,000 invested, which is far lower than the fees many actively managed ETFs and mutual funds charge.
Premium Feature
Moneyball Superscore
94/100
Today's Change
(
1.49
%) $
3.23
Current Price
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220.78
A top ETF for loading up on AI stocks The best ETF to buy is the one that aligns with your investment objectives, risk tolerance, and complements your existing holdings. Investors looking for more exposure to growth stocks than the S&P 500 provides may want to consider the S&P 500 Growth ETF, Russell 1000 Growth ETF, or Mega Cap Growth ETF. The Mega Cap Growth ETF is a pretty good buy for investors looking to bet big on the largest growth stocks, as it has a whopping 69.7% invested in just 10 holdings -- Nvidia, Apple, Alphabet, Microsoft, Amazon, Broadcom, Meta Platforms, Eli Lilly, Tesla, and AMD.
However, investors seeking to maximize their exposure to artificial intelligence (AI) stocks may want to consider buying the Vanguard Information Technology ETF rather than growth ETFs that include stocks from other sectors. A jaw-dropping 47.9% of the fund is invested in semiconductor stocks led by Nvidia, Broadcom, Micron, and AMD. However, the ETF is also a great way to get exposure to the entire AI value chain.
It has 27.2% in Apple and Microsoft. Microsoft is a leading hyperscaler that is investing heavily in AI data centers, but it's also a massive software and consumer electronics company -- making it closer to the end user of AI upgrades and tools than semiconductor companies. Similarly, Apple is taking a capital-light approach to AI by providing the hardware upon which AI developers and tools can run. In this vein, Apple is essentially a bet that AI will be used more regularly on phones, computers, and tablets -- regardless of which models or applications capture market share.
The Vanguard Information Technology ETF also holds software stocks like Salesforce, which just popped 22.6% after reporting earnings due to a partnership with Anthropic, strong demand for its AI products, and higher guidance. So while the Vanguard Information Technology ETF is a bold bet on the build-out of AI infrastructure, it also has exposure to application software companies that will increasingly layer generative and agentic AI into their offerings and, in turn, will drive demand for compute.
In sum, buying a low-cost tech sector ETF like the Vanguard Information Technology ETF is a great way to bet on the future of AI rather than just what is working today.
Daniel Foelber has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Broadcom, Eli Lilly, Meta Platforms, Micron Technology, Microsoft, Nvidia, Salesforce, Tesla, Vanguard Morningstar Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
