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Rational Advisors Inc. trimmed its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 20.0% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 24,357 shares of the computer hardware maker’s stock after selling 6,077 shares during the period. Rational Advisors Inc.’s holdings in NVIDIA were worth $4,874,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also recently added to or reduced their stakes in the company. J. Stern & Co. LLP grew its position in shares of NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Jupiter Topco LLC acquired a new position in shares of NVIDIA during the 2nd quarter worth approximately $16,156,076,000. Van ECK Associates Corp raised its position in shares of NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after purchasing an additional 19,522,304 shares during the last quarter. Amundi raised its position in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. Finally, SEB Asset Management AB purchased a new stake in NVIDIA in the 1st quarter valued at approximately $1,692,807,000. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Stock Performance NVDA stock opened at $229.28 on Monday. The company has a market cap of $5.53 trillion, a price-to-earnings ratio of 28.99, a PEG ratio of 1.77 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The business has a fifty day simple moving average of $222.66 and a 200-day simple moving average of $209.66. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business’s quarterly revenue was up 105.9% on a year-over-year basis. During the same period last year, the company posted $1.05 EPS. On average, equities research analysts expect that NVIDIA Corporation will post 9.25 EPS for the current year. NVIDIA Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has authorized a stock buyback plan on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes A number of equities research analysts have commented on the company. Phillip Securities increased their target price on NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a report on Monday, August 31st. Oppenheimer set a $315.00 price target on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Morgan Stanley set a $230.00 price target on NVIDIA in a report on Friday, October 2nd. TD Cowen restated a “buy” rating on shares of NVIDIA in a research report on Tuesday, August 18th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a research note on Friday, October 2nd. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $321.89.

Read Our Latest Report on NVDA

Insider Buying and Selling In other NVIDIA news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company’s stock.

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

Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure About NVIDIA (Free Report)

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

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

Featured Articles Five stocks we like better than NVIDIA 3 Stocks Chopped in Half: Why These Drops May Be Structural, Not a Dip Home Depot and Lowe’s Hit 52-Week Lows—But Analysts Aren’t Giving Up Utilities Are Bouncing Back—These 2 Giants Could Signal the Next Big Sector Rally Q3 Earnings Could Blow Past Consensus—Be Ready for What Comes Next

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Pinnacle Family Advisors LLC lowered its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 6.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 36,428 shares of the computer hardware maker’s stock after selling 2,689 shares during the period. NVIDIA makes up approximately 3.1% of Pinnacle Family Advisors LLC’s holdings, making the stock its 10th largest holding. Pinnacle Family Advisors LLC’s holdings in NVIDIA were worth $7,289,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of NVDA. J. Stern & Co. LLP increased its stake in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares during the period. Jupiter Topco LLC bought a new stake in NVIDIA in the second quarter valued at approximately $16,156,076,000. Amundi boosted its stake in shares of NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. SEB Asset Management AB purchased a new stake in shares of NVIDIA during the first quarter valued at approximately $1,692,807,000. Finally, Employees Provident Fund Board purchased a new stake in shares of NVIDIA during the fourth quarter valued at approximately $1,243,336,000. Institutional investors own 65.27% of the company’s stock.

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

NVIDIA Stock Performance NASDAQ:NVDA opened at $229.28 on Monday. The company has a 50-day moving average price of $222.66 and a 200-day moving average price of $209.66. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $243.37. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The stock has a market cap of $5.53 trillion, a price-to-earnings ratio of 28.99, a P/E/G ratio of 1.77 and a beta of 2.22. NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm 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%. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.05 EPS. Equities analysts predict that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA declared that its Board of Directors has initiated a share repurchase plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

NVIDIA Announces Dividend The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio is presently 12.64%.

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

Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure Wall Street Analysts Forecast Growth Several brokerages have recently issued reports on NVDA. Royal Bank Of Canada raised their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Piper Sandler assumed coverage on shares of NVIDIA in a report on Wednesday, September 9th. They set an “overweight” rating and a $300.00 price target for the company. JPMorgan Chase & Co. increased their price target on shares of NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research report on Thursday, August 27th. Itau BBA Securities dropped their price target on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Finally, Rothschild & Co Redburn raised their price target on shares of NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $321.89.

View Our Latest Report on NVDA

NVIDIA Profile (Free Report)

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

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

Recommended Stories Five stocks we like better than NVIDIA 3 Stocks Chopped in Half: Why These Drops May Be Structural, Not a Dip Home Depot and Lowe’s Hit 52-Week Lows—But Analysts Aren’t Giving Up Utilities Are Bouncing Back—These 2 Giants Could Signal the Next Big Sector Rally Q3 Earnings Could Blow Past Consensus—Be Ready for What Comes Next Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Port Capital LLC purchased a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 4,359 shares of the computer hardware maker’s stock, valued at approximately $872,000.

Several other institutional investors and hedge funds have also added to or reduced their stakes in NVDA. Windsor Advisory Group LLC grew its position in NVIDIA by 208.1% during the 2nd quarter. Windsor Advisory Group LLC now owns 39,204 shares of the computer hardware maker’s stock worth $7,844,000 after purchasing an additional 26,478 shares in the last quarter. Fund 1 Investments LLC raised its stake in shares of NVIDIA by 160.9% during the 2nd quarter. Fund 1 Investments LLC now owns 60,000 shares of the computer hardware maker’s stock worth $12,005,000 after purchasing an additional 37,000 shares in the last quarter. Freestone Grove Partners LP acquired a new stake in NVIDIA in the second quarter valued at approximately $7,035,000. Odyssean LLC boosted its holdings in NVIDIA by 77.4% in the second quarter. Odyssean LLC now owns 14,488 shares of the computer hardware maker’s stock worth $2,899,000 after purchasing an additional 6,321 shares in the last quarter. Finally, Roberts Glore & Co. Inc. IL lifted its holdings in NVIDIA by 10.0% in the 2nd quarter. Roberts Glore & Co. Inc. IL now owns 29,225 shares of the computer hardware maker’s stock worth $5,848,000 after purchasing an additional 2,660 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Insider Activity at NVIDIA In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth A number of analysts have issued reports on NVDA shares. Citigroup reaffirmed a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. Royal Bank Of Canada raised their target price on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. Truist Financial lifted their price target on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a report on Thursday, August 27th. Finally, KeyCorp reiterated an “overweight” rating and set a $330.00 price target on shares of NVIDIA in a research report on Monday, August 24th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and a consensus price target of $321.89. Read Our Latest Stock Report on NVIDIA

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

Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure NVIDIA Price Performance NVDA opened at $229.28 on Monday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a fifty day moving average price of $222.66 and a two-hundred day moving average price of $209.66. The firm has a market capitalization of $5.53 trillion, a PE ratio of 28.99, a P/E/G ratio of 1.77 and a beta of 2.22.

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. As a group, analysts anticipate that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA announced that its board has initiated a stock repurchase plan on Monday, September 28th that allows the company to buy back $150.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

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

NVIDIA Profile (Free Report)

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

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

Featured Articles Five stocks we like better than NVIDIA 3 Stocks Chopped in Half: Why These Drops May Be Structural, Not a Dip Home Depot and Lowe’s Hit 52-Week Lows—But Analysts Aren’t Giving Up Utilities Are Bouncing Back—These 2 Giants Could Signal the Next Big Sector Rally Q3 Earnings Could Blow Past Consensus—Be Ready for What Comes Next

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Elon Musk’s SpaceX (SPCX) is widely viewed as a rockets and satellites company. That’s an accurate description. But the company’s longer-ranging AI plans are a source of allure for patient market participants.

However, AI expansion isn’t inexpensive. And SpaceX’s plan to spend $40 billion on Nvidia (NVDA) chips is raising eyebrows. That could imply opportunity with single-stock ETFs. Such ETFs include the Direxion Daily SpaceX Bear 2X ETF (LOFD) and the Direxion Daily SpaceX Bull 2X ETF (LOFF).

The bearish LOFD debuted in early August. It attempts to deliver 200% of the daily inverse performance of SpaceX shares. The fund could be interesting to aggressive traders because SpaceX has to finance its purchases of Nvidia chips. That move includes raising $10 billion in bank debt and selling $30 billion in investment-grade corporate debt. That borrowing arrives against the backdrop of high interest rates.

Potentially adding to the allure of the inverse LOFD for some traders is the fact that $40 billion in borrowing isn’t far off the $44.5 billion in revenue SpaceX is expected to generate this year.

When It Comes to AI, SpaceX Isn’t Messing Around
Musk is making clear SpaceX and his AI startup xAI, which is a unit of the space company, are heavily committed to AI. He recently noted he expects the number of Nvidia chips deployed at the Colossus 2 data center could double by the end of 2026.

Musk recently said “on X that the facility has 110,000 Nvidia GB200 chips and 440,000 GB300 chips, referring to Nvidia’s latest-generation Blackwell and Blackwell Ultra GPUs. However, he said the company behind the Grok AI chatbot expects to have another 220,000 GB300s operational by the following week and an additional 220,000 units in November,” reported MarketWatch.

The near-term spending required by SpaceX to meet its AI targets may make LOFD appealing. But there’s no denying that when properly executed, data center spending can generate handsome returns. And that potentially signals risk-tolerant traders shouldn’t ignore the bullish LOFF. That is an ETF that attempts to deliver 200% of the daily returns of SpaceX shares.

“While SpaceX was previously targeting 5 gigawatts of computing capacity by the end of 2027, Musk recently said he expects that to be closer to 10 gigawatts, made up of Nvidia’s (NVDA) most advanced graphics processing units,” according to MarketWatch.

Traders can also tap the Direxion Daily NVDA Bull 2X Shares (NVDU) as a potential beneficiary of SpaceX’s sizable AI chip expenditures.

For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.

A $21 million options bet just landed against one of the most valuable companies on earth, and whether it signals a coming crash or something far less dramatic changes everything for Nvidia shareholders sitting on record gains.

A trader recently paid a large sum for the right to sell Nvidia (NASDAQ:NVDA | NVDA Price Prediction) shares well below their market price. The position was 100,000 put options with a $180 strike expiring January 15, 2027, bought for about $21 million.

A put gives its owner the right to sell shares at a fixed price, so it gains value when the stock falls. Nvidia closed down 0.52% at $229.28 that session, which valued the company at $5.54 trillion.

The day’s largest Nvidia options trade barely moved the stock. For shareholders, the useful question is whether the buyer expects a decline or simply wants protection.

What the $21 Million Buys Exchange data show 101,416 contracts traded in that put, against open interest (contracts still outstanding) of 155,649.

By our own calculation, the premium works out to about $2.10 per share. The strike sits 21.5% below the October 9 close, so the stock has to fall past $180 and far enough below it to cover that cost before the trade makes money at expiration.

The contract also loses value every day as expiration approaches. Its delta of -0.09102 means the market sees only a slim chance that the stock ends below the strike.

Directional Trade or Portfolio Insurance If this is a directional position, the buyer needs a decline of about 22% in roughly three months just to reach the strike.

Hedging is the more common explanation. A fund can buy puts to limit its losses. For a fund holding billions in Nvidia, this means avoiding selling shares and paying taxes; in that case, the premium is simply the cost of insurance with no forecast attached.

The buyer has not been identified, and the trade data cannot show whether the contracts were part of a spread, meaning a combination of options bought and sold together.

Three Downside Trades Across Chips About $270 million of premium is deep in-the-money Micron (NASDAQ:MU) puts expiring June 2028. Plus, there’s more than 180,000 puts against about 50,000 calls in the VanEck Semiconductor ETF (NASDAQ:SMH) by noon, with $46 million spent on puts and $26 million on calls.

Deep in-the-money puts move closely with the share price, so they work like a synthetic short, a way to profit from a decline without borrowing stock. ETF puts, however, often insure a whole basket of chip holdings and say little about any one company.

Nvidia’s January expiration shows a put-to-call ratio of 3.61, compared with 0.76 across its full options chain.

Why Record Highs Invite Expensive Insurance Nvidia closed at a record $239.24 on October 6, then fell 2.94% on October 8 after a report said OpenAI’s revenue came in below investor expectations. That report raised the question of whether AI spending is driven by real customer demand or by outside funding.

Customer concentration adds exposure. Management said in August that AI labs could account for roughly a quarter of its business next year, with some of that infrastructure backed by Nvidia’s own balance sheet.

The strike still sits above the past-year low of $164.27, which makes the position aggressive but possible.

What Nvidia’s Growth Outlook Means for Shareholders Nvidia’s fundamentals remain strong. Revenue for the second quarter of fiscal 2027 rose 105.8% to $96.22 billion, and the company guided to $108.0 billion, plus or minus 2%, for the third quarter, excluding China data center compute.

At a P/E of 46x, the stock already assumes strong growth. Management, however, says supply will hold back sales at least through the end of fiscal 2028 because demand runs higher, and heavy put buying can lift the stock when those hedges are unwound.

A single hedge like this one says little about fundamentals. For long-term shareholders, though, record highs are exactly when exit planning matters most, which is the whole subject of our free bubble survivor’s handbook.

The test is the next earnings report, expected November 17, 2026. The bullish case weakens if Nvidia falls short of its $108 billion guidance or closes below CNBC’s reported $180 strike before January 15, 2027.

Contact [email protected] for any questions or corrections.

Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), the American chipmaker, is reportedly considering an acquisition of Reflection AI or a further investment in the startup as it expands its involvement in open-weight artificial intelligence models.

The discussions remain at an early stage, with no terms agreed upon, and could still fall apart, although an agreement could emerge within weeks, Reuters reported, citing the Financial Times.

Options under consideration include a full acquisition, an acqui-hire arrangement under which Nvidia would hire Reflection's employees and license its technology, or an agreement to supply additional chips or increase its existing equity stake.

Nvidia has already invested $800 million in Reflection, a company founded in 2024 by former Google DeepMind researchers Misha Laskin and Ioannis Antonoglou.

Laskin, Reflection's chief executive, was seeking new investment at a valuation of $25 billion before additional funding in April, indicating the possible scale of a transaction.

The startup develops artificial intelligence tools for software development and is targeting enterprise customers and governments seeking to build customised AI systems.

Reflection launched Beam, its first open-weight AI model, on 5 October, aiming to compete with Chinese models in coding, advanced reasoning and agentic tasks, which involve AI systems carrying out multistep activities.

Open-weight models make their trained parameters available to external developers, allowing them to adapt and deploy the technology rather than relying entirely on closed systems controlled by model providers.

Reflection says Beam performs comparably to Z.AI's GLM-5.2 on advanced reasoning benchmarks, positioning the company to challenge lower-cost Chinese alternatives.

A transaction would reinforce Nvidia chief executive Jensen Huang's support for open-weight models and extend the chipmaker's investment in the artificial intelligence ecosystem, where demand for computing power remains central to model development and deployment.

Nvidia and Reflection did not immediately respond to requests for comment on the reported discussions, Reuters reported.

The "Magnificent Seven" typically refers to the 1960 Western film, but today's stock market investors recognize the term as the set of seven big tech stocks, namely Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) , NVIDIA (NVDA - Free Report) , Meta Platforms META and Tesla (TSLA - Free Report) .

This group has made the S&P 500 more concentrated than ever, which means this key U.S. equity gauge's further boom or doom depends on these seven stars. At the current level, the S&P 500 ETF — SPDR S&P 500 ETF Trust (SPY - Free Report) — invests about 35% in Magnificent Seven stocks.

Inside the Winning Attributes of Magnificent SevenApple dominates over half of the U.S. smartphone market. Plus, the Services portfolio, which includes revenues from cloud services, App Store, Apple Music, AppleCare, Apple Pay, and licensing and other services, has now become the cash cow.

The company’s AI push, including its new Siri AI, could unlock another major growth avenue. Meanwhile, its still-low AI capital spending preserves free cash flow while peers face massive infrastructure costs. Apple is known for its powerful ecosystem, loyal global customer base and strong pricing power.

Microsoft dominates the PC software market with more than 70% of the market share for desktop operating systems. Microsoft stands out for its dominant position in cloud computing through Azure.

Microsoft monetizes AI through Azure, Copilot, GitHub, security, and Office, creating a powerful recurring-revenue ecosystem. Its investments in OpenAI, data centers and AI infrastructure are positives.

Alphabet stands out for its dominant search and digital advertising business. Google Cloud is gaining from AI adoption and offers an increasingly important growth engine. Gemini, TPUs, Cloud, subscriptions, and ads give Alphabet multiple ways to monetize AI across its ecosystem.

Meta benefits from a massive ecosystem across Facebook, Instagram and WhatsApp, supporting its powerful advertising business. AI is improving ad targeting, engagement and monetization. Meta’s Muse could act as a strong future catalyst. The main risk is heavy AI capex, which could pressure margins and free cash flow.

NVIDIA dominates the AI chip market, giving it a powerful position in the rapidly expanding AI infrastructure industry. Its high-performance GPUs, networking products and software ecosystem create strong competitive advantages.

Massive AI spending by cloud providers and technology companies supports demand, while strong margins and cash generation offer financial flexibility. A $150 billion buyback authorization is another plus.

Amazon benefits from its dominant e-commerce platform and fast-growing AWS cloud business, which provides a key AI growth engine. Its advertising business adds another high-margin revenue stream. The main risk is heavy AI capex, but AWS pricing power and a large backlog strengthen Amazon’s long-term Mag 7 thesis.

Tesla’s long-term appeal extends beyond EVs, with growth opportunities in autonomous driving, robotaxis, energy storage, AI chips and robotics. Expanding AI and software capabilities could create new high-margin revenue streams, supporting Tesla’s long-term growth potential.

Mag-7 Stocks’ Heavy Capex & Free Cash FlowThe Magnificent Seven are projected to spend more than $700 billion on capex in 2026, largely on AI chips, data centers and networking. Microsoft’s projection at about $175 billion, Amazon’s at about $220 billion, Alphabet’s estimate at about $195 billion to $205 billion and Meta Platforms expecting 2026 capital expenditures between $130 billion and $145 billion point to Big Tech’s massive spending spree.

The Mag 7’s free-cash-flow advantage is, however, weakening as AI capex absorbs more operating cash. Still positive on a trailing basis, but Q2 FCF of Alphabet turned negative at $5.9 billion. Meta’s FCF has fallen dramatically as AI investment accelerates. Amazon’s FCF also turned negative. Tesla too slipped into negative territory.  Microsoft is still positive, but on a declining trend. Apple and NVIDIA are still positive.

Inside the Valuation of Magnificent SevenMicrosoft's forward price/earnings (P/E) ratio stands at 26.73X. Apple's P/E stands at 34.89X.Meta's P/E is 23.64X. Alphabet's P/E stands at 16.86X. Amazon's P/E is 19.29X. Tesla's P/E is high at 215.19X. NVIDIA's forward P/E is at 25.84X.

This shows that Tesla is the priciest stock. Alphabet is the least expensive one, followed by Amazon, Meta, NVIDIA, Microsoft and Apple.

Risks to “Magnificent Seven” InvestingThe Magnificent Seven face growing antitrust, privacy and content-moderation risks, with stricter regulations potentially hurting their business models and revenue growth. Meanwhile, the massive spending on AI infrastructure raises concerns about an AI bubble. If AI investments fail to generate expected returns, an eventual bubble bust could trigger sharp declines across these highly valued tech stocks.

ETFs in FocusSince some of the stocks look overvalued, some of the stocks are capex-heavy, and some are capex-light, investors may turn to the exchange-traded fund (ETF) approach, as the basket form lowers the company-specific risks.

Magnificent Seven ETF (MAGS - Free Report)

It is a pure-play ETF on the "Magnificent Seven." It charges 30 bps in fees.

Vanguard Mega Cap Growth ETF (MGK - Free Report)

Vanguard Mega Cap Growth ETF tracks the CRSP US Mega Cap Growth Index. "Magnificent Seven" collectively accounts for close to 60% of the total assets. The fund charges 5 bps in fees.

Invesco S&P 500 Top 50 ETF (XLG - Free Report)

The fund measures the cap-weighted performance of 50 of the largest companies on the S&P 500 Index. It holds 55 stocks in its basket, and the "Magnificent Seven" accounts for about a combined 50% share. The fund charges 20 bps in fees.

iShares S&P 100 ETF (OEF - Free Report)

iShares S&P 100 ETF offers exposure to the 101 largest U.S. companies. "Magnificent Seven" accounts for a combined 42% share. The fund charges 20 bps in fees.

Invesco QQQ (QQQ - Free Report)

This tech-heavy Nasdaq-100 ETF puts about 35% of the assets in Mag-7 stocks. The fund charges 18 bps in fees.

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NVDA buy on CPI/AI demand resilience

Buy Nvidia (NVDA) into the week. If CPI lands near expectations, the market won’t reprice the AI trade as “too expensive,” and NVDA’s valuation can grind higher toward $249. The setup is simple: CPI is the near-term multiple risk, while ASML/TSMC are the demand confirmation catalysts. Even if yields stay high, strong chip-industry signals keep investors paying for Nvidia’s growth.

Key Risk: A hotter-than-expected CPI that pushes 10-year yields higher and forces a broad AI valuation reset (multiple compression beats demand).

ASML buy as AI capex confirmation

Buy ASML (ASML) for the “orders/bookings” confirmation. ASML is the gatekeeper for advanced chip manufacturing; strong bookings and guidance imply foundries and memory makers still believe AI capacity additions are worth it years out. That supports the whole AI supply chain, including Nvidia’s ability to sell into constrained advanced-node and EUV ecosystems.

Key Risk: Bookings/guidance disappoint, signaling AI capex is being delayed or cut (capex confidence breaks).

Nvidia enters a pivotal week for the AI trade, with investors weighing whether the world’s most valuable company deserves another run at a $6 trillion valuation.

The shares closed Friday at $229.28, valuing Nvidia at $5.54 trillion, after its market capitalisation approached $5.78 trillion earlier in the week. A move towards $249 would take it near $6 trillion.

Three events this week could shape Nvidia’s next move. US inflation data arrives on Wednesday, alongside ASML’s results, followed by TSMC’s earnings on Thursday.

September CPI arrives Wednesday at 8:30 a.m. ET. Economists expect headline inflation of about 3.7%, while the 10-year Treasury yield ended Friday around 5.24%, near a 24-year high.

The inflation numbers matter for NVDA stock as higher yields reduce the present value investors assign to future profits and raise financing costs across the data-centre build-out supporting demand for Nvidia’s chips.

Deutsche Bank strategist George Saravelos said investors he had met increasingly saw something going wrong in the AI ecosystem as their biggest systemic concern. The Wall Street Journal quoted him saying AI concentration risk remains “under-priced by the market.”

A hotter CPI print would therefore hit Nvidia from two directions: its valuation multiple could compress, while the cost of funding the AI infrastructure boom would rise.

ASML reports before European markets open on Wednesday. The Dutch equipment group is crucial because its lithography machines are required to manufacture advanced semiconductors.

Its latest guidance called for third-quarter sales of €11 billion to €12 billion. ASML has also said 2026 EUV system revenue should grow more than 45%, driven by advanced logic and DRAM demand.

The key number may be bookings. Strong orders would suggest foundries and memory producers still believe AI demand justifies expensive capacity additions years into the future.

That would support Nvidia’s longer-term growth assumptions.

UBS analyst Timothy Arcuri reiterated a Buy rating and $300 Nvidia target last week after Taiwan’s September computing-equipment exports rose. Price Target quoted Arcuri describing the data as “consistent with healthy underlying AI-driven demand.”

TSMC reports Thursday and is expected to deliver a sixth consecutive quarter of record profit.

Analysts surveyed by LSEG expect net income to jump about 65% to T$746.3 billion after third-quarter revenue rose 50% to a record T$1.49 trillion.

For Nvidia investors, TSMC matters more than almost any outside earnings report. It manufactures Nvidia’s leading processors and sits inside the advanced-packaging supply chain that has constrained AI-chip output.

The key questions are forward-looking: fourth-quarter guidance, 2027 AI demand, advanced-node utilisation and CoWoS capacity.

Stifel analyst Sahej Singh said TSMC’s third-quarter revenue finished about 2% above the top of guidance and roughly 2.5% ahead of consensus. Price Target reported that Singh expects Thursday’s call to produce guidance strong enough to lift TSMC’s full-year growth outlook.

That would strengthen the case that Nvidia’s demand runway remains intact.

Trajan Wealth LLC increased its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 30.6% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 263,756 shares of the computer hardware maker’s stock after purchasing an additional 61,748 shares during the period. NVIDIA accounts for 2.0% of Trajan Wealth LLC’s holdings, making the stock its 11th biggest holding. Trajan Wealth LLC’s holdings in NVIDIA were worth $52,775,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in NVDA. Veratis Advisors Inc. bought a new stake in shares of NVIDIA in the second quarter worth about $867,000. Verity Asset Management Inc. lifted its position in shares of NVIDIA by 2.6% in the second quarter. Verity Asset Management Inc. now owns 16,667 shares of the computer hardware maker’s stock worth $3,335,000 after buying an additional 419 shares in the last quarter. Wilmar Advisors LLC boosted its stake in NVIDIA by 50.0% during the second quarter. Wilmar Advisors LLC now owns 3,000 shares of the computer hardware maker’s stock valued at $600,000 after buying an additional 1,000 shares during the last quarter. Wood Tarver Financial Group LLC boosted its stake in NVIDIA by 16.3% during the second quarter. Wood Tarver Financial Group LLC now owns 7,530 shares of the computer hardware maker’s stock valued at $1,506,000 after buying an additional 1,054 shares during the last quarter. Finally, Park Place Capital Corp boosted its stake in NVIDIA by 2.5% during the second quarter. Park Place Capital Corp now owns 79,997 shares of the computer hardware maker’s stock valued at $16,007,000 after buying an additional 1,940 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance Shares of NVDA stock opened at $229.28 on Friday. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The firm has a market capitalization of $5.53 trillion, a P/E ratio of 28.99, a P/E/G ratio of 1.77 and a beta of 2.22. The stock has a 50 day moving average price of $222.66 and a 200 day moving average price of $209.43.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the business earned $1.05 EPS. NVIDIA’s revenue was up 105.9% compared to the same quarter last year. As a group, sell-side analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current year. NVIDIA Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

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

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

Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure Analyst Upgrades and Downgrades Several equities analysts have weighed in on NVDA shares. BMO Capital Markets set a $340.00 price target on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Friday. Cantor Fitzgerald reiterated an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a research report on Thursday, October 1st. Zacks Research upgraded NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Finally, TD Cowen reissued a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Buy” and an average target price of $321.89.

View Our Latest Report on NVDA

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

About NVIDIA (Free Report)

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

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

Featured Articles Five stocks we like better than NVIDIA 3 Unique ETFs With Strong Momentum for the End of the Year 3 Beaten-Down Biotech Stocks With Triple-Digit Upside and Big Catalysts Ahead Schneider Just Paid Up for PTC—Is the SaaSpocalypse Overdone? Delta Air Lines Faces a Fuel Crisis—But There’s a Silver Lining Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Osterweis Capital Management Inc. lowered its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 2.8% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 222,332 shares of the computer hardware maker’s stock after selling 6,347 shares during the quarter. NVIDIA comprises 2.1% of Osterweis Capital Management Inc.’s portfolio, making the stock its 14th largest holding. Osterweis Capital Management Inc.’s holdings in NVIDIA were worth $44,486,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA in the 1st quarter worth $27,000. Phillip James Consulting Co. bought a new position in NVIDIA in the 1st quarter worth $40,000. Bard Associates Inc. raised its holdings in NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after acquiring an additional 266 shares during the period. Finally, Frankly Finances LLC bought a new position in NVIDIA in the 2nd quarter worth $60,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

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

Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure NVIDIA Stock Down 0.5% Shares of NASDAQ NVDA opened at $229.28 on Friday. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37. The stock has a market cap of $5.53 trillion, a PE ratio of 28.99, a PEG ratio of 1.77 and a beta of 2.22. The business has a fifty day moving average of $222.66 and a two-hundred day moving average of $209.43. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the firm earned $1.05 earnings per share. The business’s revenue was up 105.9% on a year-over-year basis. As a group, equities research analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is presently 12.64%.

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

Analyst Upgrades and Downgrades A number of research firms have weighed in on NVDA. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. Rosenblatt Securities reaffirmed a “buy” rating and issued a $390.00 price target on shares of NVIDIA in a research report on Tuesday, September 29th. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research note on Friday, October 2nd. KGI Securities boosted their price objective on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Finally, Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research report on Monday, September 21st. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $321.89.

Get Our Latest Research Report on NVDA

Insider Activity at NVIDIA In other news, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. The trade was a 4.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by company insiders.

NVIDIA Profile (Free Report)

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

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

Read More Five stocks we like better than NVIDIA 3 Unique ETFs With Strong Momentum for the End of the Year 3 Beaten-Down Biotech Stocks With Triple-Digit Upside and Big Catalysts Ahead Schneider Just Paid Up for PTC—Is the SaaSpocalypse Overdone? Delta Air Lines Faces a Fuel Crisis—But There’s a Silver Lining Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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David Swensen built the most copied investment portfolio in the world using hedge funds and private equity, then told ordinary investors to do something completely different. Understanding why he gave that advice could save you from a decision that quietly…

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From 1985 until his death in 2021, David Swensen ran Yale’s endowment. He filled it with hedge funds, private equity, venture capital and real assets. The approach became known as the Yale Model, and institutions around the world copied it.

In Unconventional Success: A Fundamental Approach to Personal Investment, published in 2005, Swensen steered individual investors toward low-cost, broadly diversified index funds, warning them away from actively managed mutual funds because of fees, tax inefficiency and manager underperformance.

Why would the man who built the most copied alternatives portfolio in the world tell you to buy an S&P 500 fund? The answer matters now. Products modeled on Yale’s portfolio are being packaged for retirement savers, and the fee math on them can cut your ending wealth by more than half.

Four Advantages Yale Had That Your Brokerage Account Never Will The Yale Model worked because of the institution running it. Swensen had structural edges no individual can buy:

1. A permanent time horizon: An endowment lives on forever and can lock money in private equity for a decade. A retired person needing cash for repairs or enduring a downturn has no such luxury.

2. Access to closed managers: The best hedge fund and venture managers turn away new money. Yale got in through reputation and relationships. Returns vary widely, so owning top performers instead of average ones made the strategy work.

3. No tax drag: Endowments are tax-exempt. High-turnover strategies cost Yale nothing extra. In a taxable account, short-term gains get taxed every year.

4. A staff doing nothing but research: Yale’s investment office spent full time evaluating managers and monitoring risk. An individual investor gets a presentation deck and a sales call.

Swensen’s Advice Followed Directly From What Individuals Lack Take those four advantages away and the logic flips. Each part of his recommendation answers a specific problem.

Low cost means the fund keeps its fees small. The Vanguard S&P 500 ETF (NYSEARCA:VOO) charges an expense ratio of 0.03%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) charges 0.09%, or about $9 a year on $10,000.

Broadly diversified means one purchase gets about 500 companies. SPY’s largest holding, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), makes up only 8% of the fund.

An index fund buys the whole market and skips stock picking. S&P’s SPIVA research shows that the large majority of active large-cap managers underperform the S&P 500 over 10- and 20-year windows. Fees are the variable that determines the outcome. Assume $100,000 invested for 30 years at an sample 7% gross annual return:

Fee Structure Ending Value Wealth Lost vs. Index 0.03% index fund About $755,000 Baseline 1% active fund About $574,000 24% 2% plus 20% of gains About $324,000 57% Both funds earn the same gross return in this example. The only difference is cost. A 1% fee costs you nearly a quarter of your ending wealth. A hedge fund structure takes more than half. To match the index fund, those managers would have to beat the market by their entire fee every year for three decades. SPIVA’s data shows that rarely happens.

What to Ask When Someone Pitches You Private Credit or an Interval Fund Asset managers are selling private credit, private equity feeder funds and interval funds to retirement savers on the endowment story. Run every presentation through Swensen’s filter:

1. Get the all-in cost: Ask for the management fee, incentive fee and fees of underlying funds. Plug the total into the 30-year comparison above. If the gap with a 0.03% fund looks like the table’s bottom row, the product has to clear a very high bar.

2. Find out how you get your money back: Interval funds buy back shares only on set schedules and may limit redemptions. You might need cash during a crisis, exactly when withdrawals tend to get restricted.

3. Ask which managers you are actually getting: A fund open to everyone rarely gets access to closed managers. That access made Yale’s portfolio work.

4. Benchmark against the boring option: VOO returned 324% over the past 10 years with almost no fees and full liquidity. Any alternative should explain in writing how it plans to beat that after costs.

Swensen’s two positions fit together. He owned hedge funds because Yale had the time horizon, access, tax status and staff to make them work. He told everyone else to buy index funds because they had none of those things. Before you buy an alternative in your 401(k) or IRA, compare its fee schedule to VOO’s and run the 30-year math yourself.

The Yale Model was built on advantages, and for a regular investor, the closest thing to an edge is paying almost nothing to own the whole market.

Contact [email protected] for any questions or corrections.

"Who asked for this product?" It's the biggest question Peter Andersen asks for Microsoft's (MSFT) new Surface Laptop Ultra powered by Nvidia (NVDA) RTX Spark.

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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 stock has pulled back in the past four consecutive days. It has slumped from the all-time high of $243 to the current $230 as investors have remained cautious about the artificial intelligence boom.

Cerebras Systems (CBRS -2.23%) priced its initial public offering (IPO) at $185 a share in May, and the stock closed its first day of trading at $311.07. As I write, shares are roughly $165 -- below the IPO price, about 47% under that first close, and near the stock's lowest close since it went public.

The business, meanwhile, keeps growing. The artificial intelligence (AI) chipmaker expects $880 million to $890 million of core revenue for 2026, up about 74% over last year at the midpoint. Core revenue is the company's preferred non-GAAP (adjusted) sales number.

Any fast-growing AI chipmaker invites a comparison to Nvidia (NVDA -0.52%). And on revenue alone, Cerebras today is about where Nvidia's data center business was nearly a decade ago.

Image source: The Motley Fool.

Nvidia had a profitable business to rely onIn fiscal 2017 (the year ended Jan. 29, 2017), Nvidia's data center business took in $830 million of revenue, almost two and a half times the $339 million it posted in fiscal 2016. That's around what Cerebras expects to pull in this year.

In fiscal 2026, that business posted $193.7 billion, a 68% rise from the year before and more than 200 times its fiscal 2017 revenue.

But data center was a side business for Nvidia back then. Gaming took in $4.06 billion of the company's $6.91 billion in fiscal 2017 revenue, almost five times the data center number. Nvidia was also solidly profitable, with net income climbing 171% that year to $1.67 billion.

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In other words, Nvidia funded its move into AI computing with a profitable business it already had. I think this is the biggest difference between the two companies at this point.

Similar revenue, a different companyCerebras takes a very different approach to the chip itself. Instead of slicing a silicon wafer into many little chips, it uses the entire wafer as one massive processor, which its IPO prospectus says is 58 times the size of Nvidia's B200 chip. Keeping that much computing power and memory on a single chip helps Cerebras run AI models unusually fast. And speed is what it sells, increasingly on its own cloud service.

Showing how quickly this pitch is catching on, Cerebras' core revenue rose 92% year over year in 2026's first quarter, and 103% in the second. That's a step up from 76% revenue growth in 2025.

Management's third-quarter forecast of $214 million to $216 million, however, implies growth slowing to around 58% year over year. Of course, Cerebras beat its own guidance last quarter, so the actual number might be higher. Even so, it would likely take a big upside surprise to get anywhere near the 145% Nvidia's data center business put up in fiscal 2017.

Unlike Nvidia back then, Cerebras also has no profitable business under its AI bet. It lost money in the second quarter even by its own adjusted measure, with a core operating margin of negative 16% (an improvement from negative 42% a year before).

Plus three customers made up around three-quarters of its second-quarter revenue.

What would Cerebras have to win?To follow Nvidia's path, Cerebras would need fast AI answers to become a big market of its own. And it'd need to win much of that market against Nvidia itself. Cerebras' newest quarterly filing lists Nvidia as "a dominant market leader" among its competitors.

"[T]he demand for fast inference is enormous and Cerebras is scaling to meet it," CEO Andrew Feldman said in the company's second-quarter earnings release. (Inference is the work of running a trained AI model to give answers.)

The early results arguably back that up. But Cerebras would also need a far longer customer list and, in time, steady profits. Nvidia had the profits before its data center sales took off.

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The stock, of course, already prices in a big part of that outcome. At roughly $165 per share, Cerebras is worth about $39 billion. That comes to about 44 times this year's expected core revenue.

For context, Nvidia's entire market value at the end of 2016 was about $58 billion, for a company that earned $1.67 billion that fiscal year.

Could Cerebras be the next Nvidia? It's possible. The technology is distinctive, and the growth is impressive. But Cerebras is around an eighth of Nvidia's fiscal 2017 size by total revenue, still losing money, and already valued at about two-thirds of what all of Nvidia was worth back then.

I'd want to see a broader customer list and a path to consistent profits before paying that price for the stock.

Outside the BoxThe P/E ratios have contracted and the CDS spreads have widened in all three cases, but Nvidia appears unscathed

Nvidia’s stock has held up recently despite a widening CDS spread. Photo: Getty ImagesCredit-default swap spreads have widened across several major AI companies, but stock prices have reacted differently. Nvidia’s shares have held up, while Broadcom and Oracle’s have fallen sharply.

Usually, when investors see CDS spreads widen, they assume the market is pricing in more credit risk. It is hard to imagine Nvidia’s five-year CDS reflecting much credit risk, given how much revenue and earnings have grown in recent years and the stock’s resilience, but that is exactly what’s been happening.

Nvidia GPUs are the most sought-after processors in AI, and they're in such demand that the chipmaker's stock climbed to yet another record this week, lifting its market cap close to $6 trillion.

Customers can now shop around for access to the chips at the giant clouds from Amazon, Microsoft and Google, as well as at so-called neoclouds like CoreWeave. They can also go to various online marketplaces or even buy the costly hardware directly.

For Nvidia, it all adds up to unrelenting growth, as management anticipates $108 billion in revenue for the October quarter, which would mark an 89% year-over-year jump.

But the paradox of choice can be a headache for companies needing computing power yesterday.

While cloud infrastructure providers have ranked at the top of Nvidia's customer list for several years, the business is diversifying. Five clients accounted for at least 10% of Nvidia's accounts receivable in July quarter, up from three in January, according to a filing.

Industry research firm SemiAnalysis counted 323 Nvidia GPU providers as of September, up from 209 less than 11 months earlier.

"You're going to see a whole new crop of really, really exciting neoclouds with hundreds of billions of dollars backlog together," Nvidia CEO Jensen Huang said at a Goldman Sachs tech conference in San Francisco last month.

Here's a rundown of the various options for accessing GPUs, and why each might make sense:

HyperscalersMany big companies spend tens of millions of dollars per year on a smorgasbord of cloud services from Amazon, Google and Microsoft. Since the 2022 launch of ChatGPT, companies have increasingly turned to the hyperscalers for GPUs so they can run generative AI workloads.

The top cloud providers come with a reputation advantage. If a software company relies on Amazon and Microsoft for GPUs and other capabilities, it won't need to panic about prospective customers questioning its suppliers.

"When you're talking to enterprises, your subprocessor had better be Azure," said Bindu Reddy, CEO of AI assistant startup Abacus, referring to Microsoft's cloud infrastructure.

In the past year, leading AI labs Anthropic and OpenAI have committed to spending over $500 billion between Amazon and Microsoft, which controlled 59% of the cloud infrastructure market in 2025, according to industry researcher Gartner.

"Hyperscalers are in a good position to show trust to the enterprises because of their 10-plus years of full-stack capabilities," said Gartner analyst Hardeep Singh. But hyperscalers don't always have as many GPUs as enterprises require, he said.

Andy Jassy, Amazon's CEO, told analysts in July that the retailer and cloud pioneer won't be able to serve all the demand it foresees this year.

"I believe this dynamic will also be true in 2027," he said.

Flagship neocloudsIf the hyperscalers were adequate, neoclouds wouldn't be proliferating.

Modal, a startup operating virtual sandboxes where AI agents work independent of main IT environments, went from running on the hyperscalers to signing up with the major neoclouds, and now it uses 25 of them, said CEO Erik Bernhardsson.

"You can get a few hundred GPUs or maybe a thousand, but at our scale, we needed way more GPUs," he said.

The hyperscalers themselves are also chasing the neoclouds. Google and Microsoft have started tapping CoreWeave, even as they all compete with one another.

"Some of the hyperscalers have approached us about taking care of customers they're worried about because they don't have the ability to service those customers when they need it," said Marc Boroditsky, chief revenue officer of Nebius, a Netherlands-based neocloud with operations in the U.S.

Video generation startup Reactor uses GPUs through Nebius and hyperscalers, said CEO Alberto Taiuti. The location of data centers matters, he said, because Reactor wants user-created videos to show up right away. Nebius delivers the specific GPUs Reactor needs, solid customer service and sufficient hardware and software, at a good price, Taiuti said.

The most visible neoclouds can require some upfront payment, and chips might not come online for months, because providers raise funding based on contracts and set up the data center equipment, Bernhardsson said.

It would be difficult for CoreWeave to turn over 10,000 GPUs to a new customer with one day's notice, said Chen Goldberg, an executive vice president. CoreWeave's near-term capacity remains essentially sold out, CEO Mike Intrator said on the company's August earnings call.

Baby neocloudsIf companies want GPUs immediately, they might have to go beyond the name brands. Some neoclouds aren't household names because they target specific countries, which can be viable in certain cases.

"Capacity right now is tight, and your relationships with your suppliers is actually one of the most closely guarded secrets for companies like ours," said Zhen Lu, CEO of Runpod.

Specialist neoclouds can offer more flexibility than the larger GPU clouds, which often require upfront payments and long-term commitments. Some sell so-called bare-metal GPUs, which give customers more control but also require them to manage more of the technical work themselves.

Companies using these smaller neoclouds share the same concerns: When can they get the GPUs, and at what price? Sunny Smith, co-founder and technology chief at Massed Compute, said customers are often willing to commit to capacity when they expect prices to rise.

Bring your ownOracle, one of the world's largest cloud providers, is letting clients bring in their own GPUs. The software maker has more debt than Amazon or Microsoft, and its credit rating is lower so it has less flexibility to go on a GPU spending spree. But it's happy to operate the technology.

"As we're generally able to preserve and improve margins in the case of things like bring-your-own-hardware, the ROIC for those types of structures will be even higher," Oracle CFO Hilary Maxson told analysts on a June earnings call, using the acronym for return on invested capital.

Oracle hasn't disclosed the names of companies that choose this path. John DiFucci, a Guggenheim Securities analyst who recommends buying Oracle shares, said it would make sense for Advanced Micro Devices and Nvidia, the top two producers of GPUs, to bring their own to Oracle.

Instead of buying thousands of GPUs, early-stage startups with limited capital can borrow them for hours at a time for less through clouds. And for companies with heavy-duty computing needs, Oracle's new route might be more attractive than building whole data centers. OpenAI committed to spending over $300 billion with Oracle over five years, but it hasn't mentioned anything about bringing in GPUs.

OpenAI declined to comment.

The method might make sense for companies that have the capital to purchase AI chips but don't have enough power, data center space or skilled labor. Like its hyperscaler peers, Oracle works hard to secure all three in healthy quantities.

Tactical dealsAnother emerging option is to cut large deals with firms that have truckloads of GPUs for rent.

SpaceX arranged to turn over excess capacity in separate deals with hyperscaler Google and open-source startup Reflection.

In April, SpaceX agreed to provide Cursor with GPUs and then bought the AI coding startup outright for $60 billion. And in May, SpaceX landed a deal to rent GPUs to Anthropic for $1.25 billion each month through mid-2029. That's more than what most startups can afford.

For SpaceX, though, the numbers work out nicely.

"The current economics have translated into a less than one-year payback on our new capital deployments for compute," Bret Johnsen, the company's finance chief, told analysts in August.

It's not only SpaceX. In July CNBC reported that Meta was working to form a cloud unit that could sell AI computing power.

Going old schoolMeanwhile, companies continue to install GPU-filled servers in on-premises data centers the old-school way as CEOs work to balance capability with cost control.

Revenue nearly doubled in the enterprise and small and medium business parts of hardware maker Lenovo's Infrastructure Solutions Group during the June quarter. "We're seeing more and more enterprises now starting to say, 'How do I bring AI into my four walls?'" said Vlad Rozanovich, a senior vice president.

The hourly spot price for an Nvidia B200 GPU has more than doubled since March, according to data from Ornn, a startup that maintains indexes.

Collaboration software maker Dropbox relies on GPUs in its data centers, CEO Ashraf Alkarmi said.

"If we want to do a lot more, I think our supply chain connections will still be beneficial and a structural advantage," he said.

Everpure, which sells data center storage hardware and software, has acquired its own GPUs, to run open-weight AI models for the company's software engineers, said CEO Charlie Giancarlo.

"In a very dynamic pricing environment, it's always good to have multiple sources that you can go to," he said.

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Aberdeen Wealth Management LLC lowered its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 22.6% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 13,910 shares of the computer hardware maker’s stock after selling 4,070 shares during the quarter. NVIDIA makes up approximately 1.3% of Aberdeen Wealth Management LLC’s investment portfolio, making the stock its 13th largest position. Aberdeen Wealth Management LLC’s holdings in NVIDIA were worth $2,783,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in the stock. Bank of America Corp DE boosted its position in shares of NVIDIA by 2.1% during the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares in the last quarter. Invesco Ltd. lifted its stake in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock valued at $26,714,167,000 after buying an additional 446,178 shares during the period. J. Stern & Co. LLP boosted its holdings in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. Amundi grew its position in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the period. Finally, Deutsche Bank AG grew its position in shares of NVIDIA by 2.3% during the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after buying an additional 2,045,101 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

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

Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure Wall Street Analyst Weigh In A number of research analysts recently issued reports on the stock. Rosenblatt Securities reiterated a “buy” rating and set a $390.00 target price on shares of NVIDIA in a research report on Tuesday, September 29th. Itau BBA Securities reduced their price target on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, October 1st. Oppenheimer set a $315.00 price objective on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Finally, HSBC increased their price objective on shares of NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $321.89. Read Our Latest Stock Report on NVIDIA

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

NVIDIA Stock Performance Shares of NVDA opened at $229.28 on Friday. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37. The stock’s 50-day simple moving average is $222.66 and its 200 day simple moving average is $209.43. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock has a market capitalization of $5.53 trillion, a price-to-earnings ratio of 28.99, a price-to-earnings-growth ratio of 1.78 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the firm earned $1.05 EPS. The company’s quarterly revenue was up 105.9% compared to the same quarter last year. Research analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current fiscal year.

NVIDIA Announces Dividend The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA’s dividend payout ratio is presently 12.64%.

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

NVIDIA Company Profile (Free Report)

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

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

Featured Stories Five stocks we like better than NVIDIA Alphabet Introduces Gemini Agent—Can It Trigger a Breakout? Palantir’s Rally Puts Wall Street in Catch-Up Mode Ahead of November Earnings Tilray Finds a Path to Growth Without Waiting on U.S. Cannabis Reform Arista Networks Plugs Into All-Time Highs Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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I think Nvidia (NVDA -0.52%) stock is a buy. Its price-to-earnings ratio is around 15 using analysts' consensus estimate for its next fiscal year (ending January 2028). For a company whose revenue more than doubled year over year last quarter, that price looks fair to me.

But it pays to know beforehand what would change that view. Nvidia is worth about $5.8 trillion, with shares trading around $239 as I write, near their all-time high. Investors paying that much are relying on Nvidia to keep charging buyers a premium for its chips.

There's one number Nvidia reports every quarter that I watch most closely: gross margin, or the share of revenue left after the direct cost of making what it sells. If it drops under 70% in a quarter with no one-time charge to explain it, I'd no longer call the stock a buy.

Image source: Getty Images. Image source: Getty Images.

Why not revenue growth?Revenue growth may look like the better number to watch. But it's a weak early warning for Nvidia right now, because the company has already told investors it should slow.

Nvidia's revenue climbed 106% year over year to $96.2 billion for its fiscal second quarter of 2027 (the three months ending July 26, 2026). Management's fiscal third-quarter guidance of around $108 billion would mean growth easing to about 89%.

And on the earnings call, chief financial officer Colette Kress said the company's preliminary expectation for fiscal 2028 is revenue growth of about 70%. Even after slowing, in other words, growth could still be remarkable.

Revenue can also keep climbing even if Nvidia needs to cut prices, because customers might just buy more chips at lower prices.

Gross margin, though, says more about how much buyers are still willing to pay for Nvidia's tech. If customers ever find options good enough to push prices down, this is arguably where the pressure might show up first.

Nvidia rarely falls below 70%Showing how much pricing power Nvidia has kept through the artificial intelligence (AI) boom, its gross margin has been at least 70% for 12 of its past 13 quarters. This run started with a 70.1% margin for the quarter ending in July 2023. It peaked at 78.4% in the first quarter of fiscal 2025, before sales of Nvidia's newer Blackwell chips started. Since then, it has mostly held between around 72% and 75%.

Just one quarter in this period fell short. In the first quarter of fiscal 2026, Nvidia took a $4.5 billion charge on H20 chips it could no longer ship to China without a license, and gross margin dropped to 60.5%. But that was a charge linked to export rules, not a sign customers were paying less.

A margin below 70% with no charge attached, then, would be the first in over three years. I'd read it as evidence that something about Nvidia's pricing power had changed.

A drop to 72% wouldn't bother meSure, Nvidia's margin is already due to come down. Management forecast a fiscal third-quarter gross margin of 74%, plus or minus half a percentage point, after 75% in fiscal Q2.

Memory prices have risen more than Nvidia expected, Kress said, so gross margin should bottom out at 71% to 72% in the fiscal fourth quarter. She expects it to settle at 72% to 73% in fiscal 2028, when price increases Nvidia has already put in place kick in.

"Tighter memory supply is a symptom of the same demand surge that's driving our own growth," Kress said.

In short, this drop has a known cause and a stated recovery plan. A margin under 70% is a different story. It might mean memory costs kept outpacing Nvidia's price increases, or that customers pushed back against those increases.

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And with the fiscal third quarter's guided revenue of around $108 billion, the gap between a 75% gross margin and a 70% one is about $5.4 billion in gross profit each quarter.

A price-to-earnings ratio of 15 only looks cheap if the expected earnings show up, and gross margin is a big part of what turns Nvidia's revenue into them.

For now, Nvidia's margin is landing around where management said it would. The fiscal fourth-quarter report, probably due early next year, should show if the bottom holds at 71% to 72%.

If the margin falls below 70% without a charge to blame, I'd consider selling the stock. Until then, I think shares are still worth buying at this price.

Elon Musk recently praised Nvidia (NVDA -0.52%) GPUs as the best available option for AI processing, while explaining that Space Exploration Technologies (SPCX +1.25%) will exclusively use them. Some of those Nvidia processors will head into space next year on its first data center test satellites. That's even better news for Nvidia, and it seems like the good times will continue to roll.

Image source: Getty Images.

Nvidia isn't slowing down Nvidia's market cap is approaching $6 trillion, yet it's putting up growth rates that look more appropriate for a start-up than for the world's largest publicly traded company. The chipmaker more than doubled its revenue year over year in its fiscal 2027 second quarter, and it posted a 62% net profit margin.

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Musk's remarks show that the leading chipmaker hasn't lost its edge. Furthermore, the decision to send Nvidia chips up into space next year is a major test. It will determine whether Nvidia's latest processors are ready for the space economy or whether some enhancements will be needed before they can be deployed effectively in orbital conditions.

SpaceX seems more than eager to take that financial responsibility off Nvidia's plate. The company is in the process of raising $40 billion just to buy more Nvidia chips.

SpaceX is far from Nvidia's only customer. Every hyperscaler uses its technology in its data centers, and given how important artificial intelligence is becoming to the global economy, sales are unlikely to slow. Nvidia is already forecasting 70% revenue growth for its fiscal 2028, which starts after the last Sunday of January 2027.

Nvidia still trades at a good valuation Nvidia has a long history of outperforming the S&P 500 (^GSPC +0.59%), especially when you zoom in on the AI boom. The GPU maker's stock is up by more than 25% this year, but that return pales in comparison with its fundamental growth. When a company's revenue and net income growth rates exceed its year-to-date stock gains, that can result in compelling valuations.

For instance, Nvidia only trades at a P/E ratio of 28.5, which is lower than the tech industry's average. It's also growing faster than almost every company in the sector. Nvidia also trades at a price/earnings-to-growth (PEG) ratio of 0.48. A stock with a PEG ratio of 1 is considered fairly valued; any positive reading below that suggests that the stock is underpriced.

Of course, Nvidia has to maintain its growth rates to keep its attractive valuation. The fiscal 2028 guidance already points to this, and the fact that companies are eager to borrow billions of dollars just to buy more of its chips shows that demand for them won't slow anytime soon.

Securitize just put Apple, Nvidia, and Tesla shares on a blockchain, and the network they chose surprised a lot of people. The reasoning behind that choice reveals something important about what tokenized stocks actually need to succeed.

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Securitize (NYSE:SECZ) made waves by launching tokenized stocks on Solana (CRYPTO:SOL), starting with 12 U.S. companies. Among these are well-known names like Apple (NASDAQ:AAPL | AAPL Price Prediction), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), along with Microsoft, Amazon, Strategy, and SpaceX. Each token is backed 1:1 by one share, and after the announcement, Securitize’s stock surged over 10%.

Securitize also tokenizes assets on Ethereum (CRYPTO:ETH), so choosing a network was a significant decision. Interestingly, despite the buzz around the launch, SOL did not see a surge; the token was trading at $110 on October 9, reflecting a 4% drop in 24 hours and a 9.6% drop over the week. This raises the question: why did Securitize choose Solana, and what does this mean for SOL holders?

Each Securitize Token Is a Legal Claim on a Broker-Held Share

Securitize Markets, a FINRA-registered broker, holds each share through its custody partner. The Solana token represents the buyer’s legal claim to that share, like a coat-check ticket: the broker holds the share, and the token proves which share is yours.

Owning a token comes with the economic rights tied to the share, meaning that holders can receive dividends and vote, depending on the rights associated with that share class. However, unless token holders convert their tokens, they won’t appear on Apple’s or Tesla’s shareholder lists.

The security of these tokens relies on Securitize Markets holding the shares and honoring the terms, without any Solana code enforcing them. Buyers must also pass identity verification, and Securitize has not yet disclosed its fees or minimum trade amounts.

Securitize Chose Solana for Fast and Affordable Trading

Trading stocks often involves many small orders, and each blockchain transaction incurs a network fee. Solana is known for quick transaction confirmations—taking just a few seconds—and typically charges only a fraction of a cent per transfer. In contrast, Ethereum has historically charged higher fees per transaction, which is more suited for less frequent transactions.

Securitize capitalized on existing activity on Solana, with around $465 million in tokenized stocks present on the platform as of September. Additionally, Securitize began tokenizing its own SECZ shares on Solana in July, further embedding itself within the ecosystem. Jump Trading is now quoting prices for the new tokens during extended U.S. market hours, and Securitize plans to enable round-the-clock trading soon.

Despite this move, Securitize has not abandoned Ethereum. The company helped launch BlackRock’s BUIDL fund on Ethereum in 2024 before subsequently adding Solana and other networks in 2025. This strategy reflects an effort to match each product with the most suitable network.

Stock Trades Settle in USDC, So SOL Holders Gain Little Directly

When buying these tokens, buyers use USDC, a stablecoin pegged to the U.S. dollar. Therefore, a buyer acquiring tokenized Nvidia shares does not need to convert funds into SOL. The only direct connection to Solana comes from small network fees paid in tiny amounts of SOL. These fees across all 12 stocks are minimal compared with SOL’s overall market value of about $65 billion.

Ethereum also saw little impact from this launch. Securitize did not move any funds off the Ethereum network, and ETH has declined 9.1% over the week, landing around $2,495—close to SOL’s 9.6% decrease. This shared downturn suggests broader selling trends across the crypto market rather than a specific issue with either network.

Why Did Securitize Launch Tokenized Stocks on Solana? Securitize chose to launch tokenized stocks on Solana because the network’s speed and low fees meet the needs of stock trading. Additionally, Solana already accommodates hundreds of millions of dollars in tokenized shares. While Securitize continues to operate on Ethereum, choosing Solana for this offering aligns with this product’s specific requirements, not a departure from Ethereum.

As a result, SOL holders are more likely to see a reputation boost than an immediate price increase, since the USDC settlement circumvents direct trading benefits for SOL. If Securitize releases trading volume and fee data that rank these stocks among Solana’s top fee-generating assets, SOL holders may see more tangible benefits in the future. Until then, broader crypto market movements will likely play a larger role in determining SOL’s trajectory.

Contact [email protected] for any questions or corrections.

A Nobel Prize-winning economist once ranked a single investing product alongside the wheel and the printing press, and his reasoning reveals why the timing of your first dollar matters far more than its size.

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Paul Samuelson, the first American to win the Nobel Prize in economics, once placed the invention of the index fund alongside the invention of the wheel, the alphabet and Gutenberg printing. He made the comparison in a speech honoring Vanguard founder Jack Bogle. He meant it.

The comparison holds up. A $100 a month practice shows why. If you wait until you can invest “real money,” you give up the years that do most of the work.

Why a Nobel Economist Rated a Boring Fund So Highly Before index funds, average investors had to pay someone to pick stocks. Brokers charged commissions. Actively managed mutual funds charged annual fees plus sales charges on deposits. Most trailed the market once costs came out.

Samuelson had argued for years that this was unavoidable. All investors together own the market, so the average dollar earns the market return before fees. Subtract fees, and the average active dollar falls behind. The index fund turned that logic into something you could buy: every stock in the S&P 500, no one paid to pick stocks, and you keep almost all of the market’s return.

Fees matter more than most people think. Take a $100 monthly practice and it grows to roughly $544,000 in the illustration below. Now cut that return by one percentage point, a typical example of active-management fees. The same deposits reach only about $404,000. You made the same deposits for the same period, and the fee alone made the difference.

$100 a Month Turns Into $544,000 Because of Time Here is the illustration. Invest $100 a month for 40 years at a constant 9.5% annual return.

You contribute $48,000 of your own money. The account ends near $544,000.

Most of that ending balance is growth on growth. Your deposits are the smaller part. Early years grow mostly from your deposits. Later years grow mostly from returns on returns.

This is a straight-line illustration of compounding, not a forecast. Real markets never deliver the same return every year. Returns arrive through crashes, flat periods and sharp rallies in unpredictable order.

The length of time matters more than deposit size. Start the same $100 a month at the same return, but wait 10 years. You end with about $203,000. Those lost years would have done more than a bigger deposit later.

Who This Framing Actually Serves This plan requires a long horizon. It works for a first paycheck, a new graduate or a newborn. Here is how to set it up:

Open the right account. At a first job, check whether your 401(k) offers an S&P 500 index option. Outside work, a Roth IRA lets growth come out tax-free in retirement. Open a custodial account for a child. A UTMA or UGMA brokerage account lets a parent invest for a minor. If the child has earned income, a custodial Roth IRA can hold up to that amount. Automate the $100. Set a recurring transfer for the day after payday. Many brokers sell fractional shares, so even a small deposit buys a slice of the fund. Turn on dividend reinvestment. Every quarterly payout buys more shares without any action from you. What VOO and SPY Hold and Cost Today The two best-known ways to own the index are the Vanguard S&P 500 ETF (NYSEARCA:VOO) and the SPDR S&P 500 ETF (NYSEARCA:SPY). VOO’s expense ratio is 0.03%. SPY charges 0.0945%. Both cost far less than the 1% example above.

Owning either fund means owning America’s largest companies. In SPY’s latest fact sheet, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is the largest holding at 8%, Apple (NASDAQ:AAPL) at 7%, and Microsoft (NASDAQ:MSFT) at 5%. These weights shift as the market moves.

VOO shares trade near $711 and are up about 323% over the past 10 years. The fund paid $7 per share in trailing 12-month dividends. Reinvesting those payments adds to compounding.

Start With $100 Now Instead of Waiting for More Waiting until you can invest more is costly. A 10-year delay cuts the ending value from about $544,000 to roughly $203,000. A larger deposit later can’t buy back time you didn’t invest. An investor who opens an account this week and automates $100 a month into a low-cost S&P 500 fund, raising the amount as income grows, puts those years to work.

Samuelson put the index fund next to the wheel because it gave anyone a cheap way to own the market’s return, and starting early with a small amount does more than starting late with a large one.

Contact [email protected] for any questions or corrections.

Investors in NVIDIA Corporation (NVDA - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the October 16, 2026 $05.00 Put had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for NVIDIA, but what is the fundamental picture for the company? Currently, NVIDIA is a Zacks Rank #1 (Strong Sell) in the Semiconductor - General Industry that ranks in the Top 18% of our Zacks Industry Rank. Over the last 60 days, ten analysts have increased their estimates for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $2.32 per share to 2.47 cents per share in the same time period.

Given the way analysts feel about NVIDIA right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

In the past, the memory chip market was a cyclical industry that went through boom-and-bust cycles every few years. But over the past few years, the rapid growth of the generative AI market has caused the demand for new memory chips to consistently outstrip its supply.

A major bottleneck for the AI market has been the availability of high-bandwidth memory (HBM) chips. Data center GPUs can't process AI workloads efficiently at data centers without HBM chips, which are produced by only a handful of memory chipmakers. Those data centers also need to store their data on high-speed solid-state drives (SSDs), which use NAND (flash) memory chips, rather than older platter-based hard disk drives (HDDs).

Image source: Getty Images.

That's why shares of Micron (MU -0.88%), a major producer of HBM chips, and Sandisk (SNDK -0.20%), a leader in SSDs, skyrocketed as the AI market expanded.

Over the past three years, Micron's stock has surged 1,400%. Sandisk's stock has soared 4,420% since its spin-off from Western Digital (WDC +0.19%) on Feb. 24, 2025. Both stocks still look surprisingly cheap relative to their forward earnings (assuming the AI boom continues), but there's another memory chipmaker you shouldn't ignore: SK Hynix (SKHY -0.41%).

Why does SK Hynix deserve more attention? SK Hynix, which is based in South Korea, is the world's second-largest producer of DRAM and NAND memory chips after Samsung. It was founded in 1983 (as Hynudai Electronics), went public in South Korea in 1996, but wasn't listed in the U.S. until its IPO on July 10, 2026.

In the U.S., SK Hynix went public at $149 per ADS. Today, its stock trades at about $170.

Today's Change

(

-0.41

%) $

-0.70

Current Price

$

169.80

SK Hynix's South Korean shares had already more than tripled year-to-date before its U.S. debut. The retail and institutional accumulation of its U.S. stock also caused it to initially trade at a premium to its South Korean shares, which were much harder to purchase.

But today, SK Hynix's stock trades at just five times next year's earnings. Micron and Sandisk trade at six and seven times forward earnings, respectively. While SK Hynix isn't growing as quickly as its smaller rival Micron, it's growing a lot faster than Sandisk.

Revenue Growth Forecast

Current Fiscal Year

Next Fiscal Year

SK Hynix

254%

54%

Micron

256%

106%

Sandisk

143%

19%

Data source: Marketscreener.

SK Hynix also controls more than half of the HBM market, thanks to its early shift toward HBM3 chips in late 2021, and it produces over half of the current-gen HBM4 chips that support Nvidia's (NVDA -0.33%) top-tier data center GPUs. That scale puts SK Hynix in a stronger position than Samsung and Micron -- which typically control 25%-40% and 5%-20% of the HBM market, respectively -- to roll out its newest HBM4E and HBM5 chips to data center operators.

In the NAND market, SK Hynix is ramping up production of high-capacity quad-level cell (QLC) enterprise SSDs to store massive amounts of data that AI agents can quickly access. By bundling those SSDs with its HBM chips, it can lock in more customers as a "one-stop shop" for AI infrastructure upgrades and widen its moat against its competitors in both markets.

Why is SK Hynix worth buying right now? SK Hynix's scale and diversification make it a safer long-term investment than Micron, which is well-diversified but still an underdog in the DRAM, HBM, and NAND memory markets, and Sandisk, which is a pure play on NAND chips. From 2025 to 2028, analysts expect its EPS to grow at a 107% CAGR -- so it has significant upside potential if it's revalued as a high-growth stock.