Amazon (AMZN -0.95%) recently launched a new software tool that will allow its custom Trainium AI chips to run code written in the most popular AI coding language without modification. It's a move aimed at boosting the potential for Amazon's custom application-specific integrated circuits (ASICs) to take market share away from Nvidia's (NVDA -0.59%) widely used graphics processing units as demand for AI chips continues to swell.
Amazon isn't the only tech giant working on its own AI chips for commercial use. Alphabet recently began making its custom AI chips available for sale directly to enterprises, rather than limiting them to being leased through Google Cloud. However, investors shouldn't expect these developments to have a meaningful effect on Nvidia's financial results.
Image source: Getty Images.
Amazon has a relatively small chip business Amazon's AI chip business wrapped up the second quarter with a $25 billion annual revenue run rate. That's not small, but it pales in comparison to the $96.2 billion in revenue Nvidia booked in its fiscal 2027 second quarter alone, or the more than $300 billion it booked over the past four quarters.
AMZN Amazon$248.00-$2.38 (-0.95%)
NASDAQ · As of 4:00 PM ET 10/23/26
While Amazon's push to commercialize its custom chips could boost sales, the largest tech companies are still rushing to buy Nvidia chips. That's how Nvidia managed to produce 106% year-over-year revenue growth in its most recent quarter, and CEO Jensen Huang says that AI demand is still accelerating.
If anything, Amazon's AI chips can become niche hardware in the industry. Since the AI build-out has been so expansive, it may provide enough room for high, sustained revenue growth rates. If Amazon's chip business can generate net profit margins similar to Nvidia's, that should be enough to boost Amazon's stock price.
Amazon is still buying Nvidia chips Another point supporting the view that Amazon's AI chips won't significantly impact Nvidia's business is that Amazon is still buying Nvidia chips. In fact, it has built up a stockpile of billions of dollars' worth of them that it doesn't yet have the data center infrastructure and connected electricity supply to power up.
Nvidia's processors have become the most reliable option for providing high-end compute in an industry that values speed and will pay a premium for flawless execution. Even as Amazon touts the value of its own chips for the narrower workloads they are designed to handle, for flexible compute power, the tech leader still turns to Nvidia.
Notably, those stockpiled supplies of chips and data center servers highlight that electrical supplies will remain a major bottleneck for AI infrastructure expansion. Still, hyperscalers aren't waiting for that problem to be resolved completely, and continue to accelerate their capital expenditures.
Nvidia's guidance implies that its business is still growing at a substantial rate despite the intensifying competition. Its fiscal 2027 third-quarter guidance calls for $108 billion in revenue at the midpoint, which would amount to 12.3% sequential growth. That guidance supports Huang's claim that AI demand is accelerating.
While more rivals are likely to enter the expanding AI chip market, Nvidia remains the clear leader in data center chips.
Chip stocks have been under pressure recently. During Thursday's trading session, the Philadelphia Semiconductor Index plunged by nearly 7%, and all 30 of the index's stocks finished the day in the red. Sector leader Nvidia (NVDA -0.59%) fell about 4.5%, as investors seem increasingly skeptical that the AI spending spree will last for years.
On that same day, Nvidia's CEO Jensen Huang said in an interview that demand from "neoclouds," companies that rent out Nvidia-powered computing capacity, is off the charts. But he also said that the money needed to build the capacity the market demands is far greater than what is actually available.
Image source: Getty Images.
Huang's proposed solution is to turn Nvidia's chips into what he calls a "financeable asset."
What exactly would this mean?In simple terms, Huang wants to convince lenders to use the company's chips as collateral to secure loans for AI infrastructure, much like a vehicle secures an auto loan. Nvidia has been working with several investment banks for months to help mobilize more than $500 billion in financing for AI infrastructure.
Historically, chips have been a rapidly depreciating asset. Just think of how quickly the average laptop loses value and becomes obsolete, as a simplified example. But Huang argues that Nvidia's chips retain their value because they're productive, durable assets that can be transferred from one customer to another. Huang pointed out that rental prices for Nvidia's older H100 chips actually increased between Oct. 2025 and March 2026.
Some headlines have compared Huangis proposal to securing a mortgage, but as a financial planner, I think a car loan is a better comparison. A home is an appreciating asset. This is why home mortgage interest rates are generally lower than car loan rates. If the borrower can't pay back the loan, the lender can foreclose, sell the home, and (usually) recoup all of its money.
On the other hand, cars lose value over time, but lenders are more than willing to finance them because they know roughly how fast a car loses value. When it comes to AI chips, the question is whether their depreciation is predictable. Huang has said that Nvidia's chips can generate revenue for over a decade, but many in the industry are more skeptical; to be fair, computing hardware is typically depreciated over just three or four years. So, there are a lot of details to work out when it comes to the question of "what happens if something goes wrong and a loan isn't paid back?"
What this means for investorsHuang makes the point that demand isn't the problem and that helping its customers address their capital constraints could increase order volume.
On the other hand, this seems to make investors uneasy, and it's not hard to see why. Nvidia is effectively helping its customers borrow money to buy its products, and it has said it may guarantee part of the chips' future value to make that happen. The more of Nvidia's growth depends on its customers' ability to borrow money, the more exposed it will be if a credit crunch comes.
The bottom line is that Nvidia remains the dominant supplier, and demand isn't likely to disappear anytime soon. But like many investors, I'll be watching the credit markets closely. The soaring bond yields of the heavily indebted neoclouds tell us that the appetite for lending for AI infrastructure before there's real cash flow is declining. The AI build-out now depends heavily on borrowed money, and it looks like that won't change anytime soon. When you're deciding whether to buy shares of any AI infrastructure companies, keep this in mind as a risk factor.
Nvidia (NVDA -0.59%) has been one of the biggest beneficiaries of the artificial intelligence (AI) revolution that began four years ago, with shares of the semiconductor giant up by almost 1,700% over this period.
Nvidia stock's stunning surge has made it the world's largest company by market cap. The important thing to note is that Nvidia is still growing at a healthy pace. However, the stock has underperformed the broader market this year. The 19% jump in Nvidia stock in 2026 is lower than the 62% gains clocked by the PHLX Semiconductor Sector index.
Nvidia's tepid returns this year have made the stock extremely cheap. I will take a closer look at Nvidia's valuation in this article and look back to see what happened when it was this cheap last time.
Image source: The Motley Fool.
Nvidia is trading well below its five-year average valuation Nvidia is trading at 23 times fiscal 2027 earnings, according to YCharts. That's lower than the company's five-year average forward earnings multiple of 33.4, according to Morningstar. Nvidia's forward earnings multiple, based on its projected earnings per share for fiscal 2028, is even lower at 13.6.
NVDA Nvidia$210.96-$1.25 (-0.59%)
NASDAQ · As of 4:00 PM ET 10/23/26
We will have to go back to 2018 to find a forward earnings multiple below 20 for Nvidia, according to Morningstar. The company exited calendar 2018 with a forward earnings multiple of 18.7. The metric has been significantly higher in the years that followed, driven by a solid surge in the company's stock price. As it turns out, this semiconductor stock has jumped by more than 6,500% since the beginning of 2019.
The stunning rally can be justified by Nvidia's outstanding growth trajectory over the past eight years, fueled by multiple catalysts, including the cryptocurrency boom, the incredible demand for gaming hardware during the pandemic, and the advent of AI toward the end of 2022. Importantly, Nvidia isn't done growing yet.
The company's revenue in the first half of fiscal 2027 increased by 96% year over year to $177.8 billion. The bottom-line growth has been stronger, with non-GAAP earnings per share increasing 130% year over year to $4.09. It is worth noting that Nvidia's earnings are growing faster than the broader market.
The S&P 500 index's earnings, for example, are anticipated to increase by 33% this year. Analysts expect a 16% increase in the index's earnings next year, while Nvidia's bottom line is projected to jump by 71%. So, Nvidia shouldn't be trading at a discount to the S&P 500 index's forward earnings multiple of 19. In fact, the company's attractive valuation and solid growth prospects indicate it could resume its bull run, as it did last time when it traded at less than 20 times forward earnings.
The stock is poised for a major breakout Nvidia's 12-month median price target of $320 suggests a potential jump of 44% from current levels. What's more, almost all the 72 analysts covering Nvidia rate this tech stock as a buy. However, I won't be surprised to see Nvidia exceeding Wall Street's median price target over the long run, primarily due to its above-average earnings growth rate.
The following chart suggests that Nvidia's earnings per share will increase in the mid-30% range even in fiscal 2029, following the solid jumps projected for the current and the next fiscal year.
Data by YCharts
Let's say Nvidia trades at 30 times earnings at the end of fiscal 2029 (a slight discount to its five-year average forward earnings multiple of 33), and its earnings per share reach $21.34 (based on the consensus estimate seen in the chart above), the stock could soar to $640. That's almost 3x Nvidia's current stock price.
Now, there are several reasons why Nvidia can indeed sustain its impressive growth.
First, the company's dominance in the AI chip market, where it reportedly holds 80% share, will be the primary catalyst for its growth. McKinsey predicts that AI-driven growth in semiconductors will push the overall chip market's revenue to a whopping $2.3 trillion in 2030. That's well above the $1.6 trillion estimate offered by the consulting giant last year.
McKinsey notes that prices of cutting-edge chips are rising, with further upside expected. Nvidia is reportedly charging $7-$8.8 million for a server rack based on its latest Vera Rubin chips. That's well above the $2.8-$6.5 million range that prior-generation Blackwell server racks used to cost, depending on configuration.
Second, Nvidia has also entered the lucrative server processor market. It expects this space to contribute substantially to its top line. So, the company's focus on unlocking new growth opportunities should ensure that it indeed outperforms the broader market over the long run.
As such, investors looking to buy a potential multibagger trading at an attractive valuation can consider Nvidia, as it won't be surprising to see history repeat itself and the stock surge higher once again, just as it did the last time it was this cheap.
Nvidia's emergence as financier for the global AI buildout is facing its first major stress test as credit markets tighten for key partners.
After creating the chips that powered the early stages of the generative artificial intelligence era, Nvidia turned to using its financial prowess to fund AI model developers, data center companies and a host of so-called neoclouds. CEO Jensen Huang's strategy has been to not only build the most advanced technology but to provide customers with investment as well as help them take out loans so his systems can reach many more hands.
That's meant taking full advantage of Nvidia's investment grade credit rating and providing backstop guarantees on mega-projects for OpenAI so that buildouts can get funded at lower interest rates.
As of its last quarterly financial filing in July, Nvidia had $36 billion in off-balance-sheet AI cloud agreements, or backstops, for neoclouds, in addition to its guarantee on up to $105 billion for chips, land and power at a proposed 10 gigawatt OpenAI data center in Ohio. The company signed as a tenant for $20 billion in future data center leases, which will later be assigned to third parties.
For the vast majority of these deals, Nvidia won't have to pay up unless participants in the project default.
"If the demand for compute doesn't meet these really super lofty expectations, we're going to have a problem," said David Trainer, founder and CEO of financial research firm New Constructs, in an interview.
Nvidia declined to comment for this story.
watch now
Market conditions may soon test Nvidia's mettle. Shares of neoclouds CoreWeave, Nebius and IREN, all cash-burning companies in Nvidia's portfolio, are down at least 30% this month. CoreWeave, the biggest of the group, has seen the spread on its credit default swaps soar past 11%, as investors are forced to pay up for insurance against default.
Nvidia has backed other neoclouds that have run into challenges.
The company is an investor in Australian AI cloud provider Firmus, which abruptly withdrew its IPO plans this month, as well as Nscale out of the U.K. and SoftBank-backed SB Energy. Both of those companies filed to go public in the U.S. in September but haven't provided updates on their plans in weeks.
Nvidia wrapped up a third straight down week on Wall Street on Friday, with its stock now off 7.6% in October, on pace for its worst month since November of last year.
Huang reiterated his confidence in the market this week, telling CNBC on Thursday that demand for neoclouds is "off the charts."
"What is missing in the middle is the working capital to fuel that growth," Huang told CNBC's Arjun Kharpal on the sidelines of the company's GTC conference in Berlin. "Because there's just so much demand across so many sectors of AI, there's a scarcity of capital."
Nvidia has taken equity stakes in dozens of companies, including big investments in OpenAI and Anthropic. Its portfolio is worth $99 billion as of the second quarter.
Building the ecosystemInvestors told CNBC that a big question surrounding Nvidia is how the company can use its cash and $5 trillion market cap to get more chips into customers' hands, and how much risk it will assume in the process.
Nvidia graphics processing units are critical for training and deploying AI models. Revenue in the latest fiscal year hit $216 billion, up roughly eightfold since OpenAI launched ChatGPT in late 2022.
Before the AI boom, Nvidia sold graphics cards that could fit into a standard server rack or PC. Its newest systems are much larger and more expensive. Nvidia's flagship Vera Rubin product is a seven-foot rack containing 72 GPUs and weighing as much as a pickup truck. It costs more than $7 million, according to a Morgan Stanley estimate.
While Nvidia still dominates the AI chip market, competition is emerging from the likes of Google, which rents out tensor processing units (TPUs) inside its massive cloud offering, and Advanced Micro Devices, which launched its first AI rack called Helios in July.
watch now
Cash is Nvidia's other great advantage. The company generated $70 billion in free cash flow in the first half of this year, while AMD totaled just over $4 billion and Google parent Alphabet went cash flow negative in the second quarter to fund its buildout.
That's a big edge for Nvidia in building out its ecosystem. The company is now offering a full-service platform complete with software, services, integrated hardware and, for many customers, financing assistance.
Nvidia's most recent quarterly financial filing in August outlined over $500 billion in off-balance-sheet commitments over the coming years, with a majority maturing through fiscal 2029. That same month, Huang announced a partnership with six large asset managers on a $500 billion financing push designed to treat compute infrastructure as an asset class.
That agreement, which promised financial firms up to $125 billion in residual value guarantees on GPU financings, was in addition to the stakes Nvidia has taken as a limited partner in private equity funds. The company seeded $2 billion in Brookfield's inaugural AI Infrastructure Partners Fund, which aims to raise $10 billion in total capital, as well as other unconfirmed sums in KKR's Helix Digital Infrastructure (an $11 billion vehicle) and Valor Equity Partners' $5.4 billion dedicated compute fund.
"We used to build chips that we sell, and these are technology components that people buy and use," Huang told CNBC, in announcing the agreement in August. "But now, Nvidia's AI factory platform is really an investable asset."
Huang has adopted a marketing mantra to reinforce the unique value of its equipment.
"We're the most rentable. We're fungible, and we're durable," he said on a podcast with investor Brad Gerstner published last week.
20 years of hardware in OhioWhile Nvidia waits for Wall Street firms to pull in investors to expand the GPU loan pool, the chipmaker is already actively fostering record-sized deals in the AI infrastructure space.
Nvidia's biggest single guarantee is for OpenAI's forthcoming facility in Pike County, Ohio, which could be the largest data center in the world. That deal requires use of Nvidia hardware for at least 20 years.
The shift from chips to capital carries significant risks should OpenAI run into trouble.
If OpenAI misses payments or faces insolvency, Nvidia can take over the lease, find a new tenant, or ask the landlord, SB Energy, to sell the facility, guaranteeing to pay the difference for the latter two arrangements up to $105 billion if the release or sale falls below a minimum price. Nvidia could also pay SB Energy a lump sum. On the other side, if OpenAI posts its own collateral, or achieves a high enough credit rating, Nvidia's guarantee ends.
At CoreWeave, Nvidia's investment includes equity and a commitment to buy up to $6.3 billion of its compute if it can't find another taker.
Nvidia's backstops can take many forms, such as guaranteeing a minimum resale price or a minimum hourly offtake price for the chips in the event the lender has to recoup the assets. With Sharon AI and other neoclouds, Nvidia's deals have come with revenue-sharing agreements.
"We believe these AI cloud partners have strong customer demand and robust sales pipelines but are constrained by the large-scale infrastructure that is required to meet that demand," Nvidia said in its quarterly filing.
CoreWeave and Nebius this month
Huang said this week that CoreWeave doesn't need Nvidia's backstop and that the neocloud's cost of capital is decreasing. CoreWeave has roughly $51.6 billion in total debt, including about $35 billion in notes, bonds and loans. Yields on its bonds maturing in 2031 and 2032 topped 15%.
Brian Stutland, portfolio manager at Equity Armor Investments, said the market jitters reflect concerns about the stability of the business.
CoreWeave and other neoclouds "will sign contracts into the future, and that all looks fine and dandy in their earnings reports, but is that contract going to be stable?" Stutland said. "Is it going to break at some point?"
Nvidia says its financial support can help customers build the infrastructure needed to meet strong demand for its chips. More computing capacity could also help AI labs develop new models and services, creating further demand for Nvidia products.
"They'll do $700 billion in revenue next year," Deepwater Asset Management founder Gene Munster told CNBC last month. "That affords them the ability to finance some of their customers."
Nvidia's credit backstops have mostly kicked in over the past six to 12 months. Its last annual filing, published in February, makes no mention of AI cloud agreements.
Warren Hosseinion, co-founder of AI infrastructure startup Compute Labs, said Nvidia doesn't want to be in the position of insurer, "but they're willing to play that role while the market and the industry catches up."
"They kind of control how things move," said Hosseinion, whose company tokenizes GPUs in order to open up pools of capital for neocloud operators. "They have to be very careful about how they release their technology at what pace, because a lot of that will dictate how the market moves around it."
Not a 'complete panacea'Nvidia is actively looking for insurers to bear some of the risk associated with the potential loss in value of GPUs.
"Insurers are not yet a complete panacea to this problem," said Tom Hoad, executive director of product innovation at global insurance group Howden. "But they are probably going to turn up and be helpful in the right situations, and therefore open up some commercial transactions."
According to research from New Constructs, Nvidia's net present value of off-balance-sheet liabilities in fiscal 2026 totals over $153 billion, an increase of over $100 billion from last year.
Such liabilities have been growing across the entire AI trade, mainly in the form of lease obligations. Ratings agencies like Moody's have been sounding the alarm. In 2026, guarantees are the fastest-growing type of off-balance-sheet financing arrangements, the agency said.
Moody's doesn't count guarantees as debt when rating corporate buyers, but it's "something we're constantly monitoring," said David Gonzales, a vice president at the agency.
"These things are advanced structures that are unique, and so there is no blanket real approach you can take," he said. Gonzales said it's likely that chips will retain "values in excess of contractual residual value amounts" in the near future, which would mitigate risk in many of Nvidia's financing structures.
Still, how much exposure investment grade AI players can handle is "the question we're evaluating at all times every day," Gonzales said.
"It's the center of all of our discussions right now," he said.
Putting aside $200 to invest every month is not something everyone can do. Yet for those who can and do, the potential rewards are real.
If you start next month and continue through December 2035, you'll have put aside $22,000 in contributions alone. But along the way, if you put that money into the right investments -- for example, Nvidia (NVDA -0.59%) -- those contributions could grow into a much larger nest egg.
But what's a realistic return to expect from that strategy over the next nine years, especially given how much Nvidia stock has already grown recently?
The answer starts with Nvidia's business model and ends with how much investors are willing to pay for its future.
Image source: Getty Images.
How Nvidia can keep growing as AI becomes commonplace
Imagine it's 2035. Artificial intelligence (AI) chatbots have moved from the fringes to everyday use.
Scheduling an appointment? You'll almost certainly be talking to an AI chatbot. At the drive-thru? An AI chatbot might take your latte order. Have a question about your taxes? There will likely be an AI chatbot for that.
In short, AI isn't going anywhere. In fact, as the systems improve, organizations will rely more on AI-powered tools to stay competitive and meet consumer expectations for speed, accuracy, and 24/7 availability.
To power these applications, AI hyperscalers will need a far greater number of expensive graphics processing units (GPUs), the brains of the latest and greatest AI applications. Or as Nvidia CEO Jensen Huang recently said, "AI has reached its inflection point."
What Huang means by this is that AI systems are increasingly moving from learning about the world (training) to problem-solving (inference). As we move forward, these systems will be able to handle increasingly difficult tasks, often independently once they've received their initial instructions.
Based on that, we can expect AI to follow a path similar to the ones previously charted by technologies such as electricity, telecommunications, and the internet: evolving from a novelty we marvel at to an engine of rapid growth, and ultimately becoming an essential utility.
NVDA Nvidia$210.96-$1.25 (-0.59%)
NASDAQ · As of 4:00 PM ET 10/23/26
How $200 a month in Nvidia stock could grow
Putting aside $200 per month adds up to $2,400 per year. Do that for just over nine straight years (110 months), and you end up with $22,000 just from contributions.
To plot what that might turn into over time, let's look at several paths forward, running from bearish to bullish.
MonthsTotal ContributionsNegative 5% Annualized Growth5% Annualized Growth10% Annualized Growth20% Annualized Growth12$2,400$2,346$2,456$2,513$2,63324$4,800$4,577$5,037$5,289$5,84336$7,200$6,699$7,751$8,356$9,75848$9,600$8,717$10,603$11,745$14,53160$12,000$10,637$13,601$15,487$20,35272$14,400$12,463$16,753$19,622$27,44984$16,800$14,200$20,066$24,190$36,10496$19,200$15,852$23,548$29,236$46,658108$21,600$17,423$27,209$34,811$59,527110$22,000$17,677$27,837$35,795$61,931
At the low end, if Nvidia endures a negative 5% annualized return, you'd end up with a position worth $17,677. On the other hand, the total skyrockets to more than $61,930 with a 20% annualized return. For context, Nvidia has averaged an eye-popping 63% compound annual growth rate (CAGR) over the last 10 years. But given that it's now the world's largest company, accounting for about 7% of the value of the entire U.S. stock market all by itself, it's unreasonable to think that it could repeat that type of performance over the next decade.
What could derail Nvidia's growth?
There are two obvious threats that could put hurdles in the way of Nvidia's growth. First, regardless of demand, the company might not actually be able to source enough components or production capacity to deliver fully on that demand. On the latest earnings call, Huang noted that "our entire supply chain is challenged." Ultimately, Nvidia can only grow as fast as its suppliers and foundry partners allow, and if the supply chain begins to bend and creak under the enormous weight of the AI revolution, that could slow Nvidia's growth.
NVDA Revenue (Quarterly YoY Growth) data by YCharts.
Second, Nvidia's customers and competitors (which in some cases are the same companies) might alter their courses. AI hyperscalers are spending enormous amounts of money building out AI infrastructure at breakneck speed. If one or more were to pull back on spending, Nvidia's top line could take a hit.
Similarly, rising competition could begin to erode Nvidia's margins. Direct rivals like AMD are gaining ground with new products, and even Nvidia's largest customers like Alphabet, Amazon, and Microsoft are investing heavily in developing their own AI chips in partnership with players like Broadcom and Marvell Technology.
A monthly Nvidia investment: Is it worth it?
For argument's sake, let's say that Nvidia could deliver a 10% annualized return over the next 110 months. At that rate, the total value of your position would grow to just over $35,000.
This growth rate assumes Nvidia will face continued supply chain challenges, but not catastrophic ones. It also assumes that, even as competition continues to increase, Nvidia will maintain a significant competitive advantage in data center processors.
In summary, the $200/month habit is entirely controllable; the results are not. Nonetheless, a person who consistently invests is already paying their future self and is likely to be rewarded. Even if Nvidia falls well short of its recent returns, a market-matching 10% return would still deliver significant benefits.
Earlier this week, a video of Nvidia CEO Jensen Huang playing with a flock of waddling Microducks during his keynote at the company’s GTC Berlin conference went viral. The robots, stomping their little feet and making tiny R2-D2 noises, sat, fell down dead for a “nap,” and summersaulted on voice command. They were so darn cute that by the next day, preorders of the Microducks surpassed 20,000 units, Hugging Face’s Clem Delangue said in a tweet.
The Microducks are expected to be delivered in time for Christmas, meaning these robots might already be on their way to becoming the hottest toy for the holiday season. Delangue thinks they might end up being the best-selling robot of the year, and possibly not even for kids. The promotional videos show adults playing with them, too.
Microducks are open source devices produced by Pollen Robotics, a company acquired by Hugging Face in 2025, which means they are now an Nvidia company. The GPU giant bought Hugging Face in September. This is actually Hugging Face’s second robot, after the also-cute Reachy Mini.
Microducks were trained using Nvidia’s technology stack, wherein simulations of them were taught basic tricks (walk, sit, stand, etc.) that they ship with. Pollen says that owners can train their robots with new tricks and then share them with the community.
Here’s the video below. Enjoy it as a palate cleanser after the scary black eye the AI industry gave itself this week, as AI involvement was blamed for cyberattack after cyberattack. OK, AI might seriously damage the world. But it can be fun, too. It’s hard to watch this video without ordering one.
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Julie Bort is the Startups/Venture Desk editor for TechCrunch.
You can contact or verify outreach from Julie by emailing [email protected] or via @Julie188 on X.
faces mounting competitive pressure and potential financial risks from its growing investment commitments, according to Seaport Research, which maintained its Sell rating on the chipmaker and a $180 price target.
Analyst Jay Goldberg said Nvidia's financing arrangements may reflect rising pressure from rivals. He also questioned whether the company's efforts to support customers and secure supplies could create competing demands on its financial resources.
Nvidia added roughly $250 billion in commitments during its latest quarter, according to Goldberg. Those obligations include spending to secure components and support data center construction, tying the company more closely to the expansion of AI infrastructure.
Goldberg also highlighted a separate financing initiative involving Nvidia, six private equity firms and banks. The proposed platform could provide about $500 billion in funding, with the possibility of reaching $1 trillion. Nvidia would not bear the entire obligation, but the analyst views its role as central to the arrangement.
The concern is that financing structures built to accelerate growth could magnify losses if demand for computing capacity weakens. Goldberg warned that infrastructure providers reliant on Nvidia's support could face pressure during a downturn, potentially adding strain when the chipmaker's own sales and cash flow soften.
Goldman Sachs prime brokerage data shows hedge funds leaning bearish at levels rarely seen in five years, yet those same funds are bleeding money daily while a Fed decision and two megacap earnings reports loom over the trade.
Goldman Sachs prime brokerage data first reported on Thursday, October 22, 2026, shows hedge funds have built short positions in stocks to a near five-year high. Major indexes moved in opposite directions that same day.
The S&P 500 fell 93.74 points, or 1.21%, to 7,663.43. The Nasdaq Composite dropped 694 points, or 2.6%, to 26,008.86. The Dow added 11.89 points to 52,867.98, and the Russell 2000 gained 0.1%.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) closed at $763.96, down 1.18%. The Invesco QQQ Trust (NASDAQ:QQQ) fell 2.86% to $704.47.
Heavy shorting can mean professionals expect more downside. It also leaves the market full of sellers who will eventually have to buy shares back, and those positions are concentrated in tech stocks.
How Bearish Hedge Funds Have Become
In October, short sales exceeded long purchases across global stocks by about five-to-one. Short leverage in Goldman’s prime book has reached the 99th percentile of its five-year history, “indicating bearish exposure was higher than in almost all of that period.”
Net leverage (longs minus shorts) among fundamental long-short funds is near a three-year low, while gross leverage (longs plus shorts) has risen. That means funds are adding risk on both sides of their books and leaning bearish overall.
Goldman’s Mark Wilson described net equity exposure as historically low amid swings in rates and energy prices. He said higher yields pushed investors to rethink equity risk.
Leaning Short and Still Losing Money
Global fundamental long-short funds lost 2.9% through October 15, “suffering losses every trading day during that stretch.” Asia-focused stock pickers lost 6.8% in the first half of October.
Losses like these are what set up a short squeeze. In a squeeze, rising prices force short sellers to buy back shares, and that buying pushes prices higher still.
Goldman has warned about that risk, but crowded short positions cannot tell you when a rally will start. Some of those shorts also hedge long holdings, so they may stay open as long as the funds keep those holdings. Riding a late-cycle market with this much short interest piled up is its own skill, and we laid out both halves, the staying and the leaving, in a free bubble handbook here.
A Selloff Confined to Megacap Tech
Most stocks rose while tech fell. The Philadelphia Semiconductor Index dropped over 6%, its biggest daily percentage drop since June 23.
Meta Platforms (NASDAQ:META | META Price Prediction) fell 6.98% to $648.85 after its third-quarter report. NVIDIA (NASDAQ:NVDA) lost 4.40% to $212.21, Amazon (NASDAQ:AMZN) fell 4.57% to $250.38, and Microsoft slipped 2.23% to $521.08.
The 10-year Treasury yield fell 19.3 basis points to 4.953%. That was its largest daily drop since March 10, 2023, and the yield closed below 5% for the first time since September 23. Lower yields raise the present value of future profits, and growth stocks benefit most.
Fed Day and Two Megacap Reports Could Decide It
Fundstrat’s Tom Lee said he thinks the selloff is nearly over. He pointed to “a crowded short trade in tech” and a Fed that may be “flipping from hawkish to dovish.” ETF analyst Eric Balchunas posted on X: “Buying the dip here has [a] pretty good record of working.”
The Fed announces its decision on Wednesday, October 28, at 2:00 p.m. ET. Microsoft is expected to report around October 28 and Amazon around October 29, both after the close, although neither company has confirmed its date. The shorts would be proven right by a yield rebound, weak megacap results, or a hawkish Fed.
What SPY and QQQ Investors Should Research Before Fed Day
SPY still holds a 12.03% year-to-date gain. The October 22 losses came from a narrow group of megacaps while most stocks rose.
QQQ, up 14.68% year-to-date, gives you more exposure to the tech stocks at the center of this fight. It would gain the most from a squeeze and lose the most if the shorts win. SPY is the broader fund because it holds stocks that rose as well as those that fell.
Check the October 30 close. If the 10-year yield is back above 5% and SPY is below $763.96 after Amazon reports, the bears have the stronger case.
Contact [email protected] for any questions or corrections.
Stellantis NV (NYSE:STLA) shares are tumbling to a fresh 52-week low Friday, leading a broad slide in auto stocks.
Stellantis stock is testing key support levels. Why is STLA stock at lows? At approximately $3.99, Stellantis has broken below its prior 52-week low of $4.19. Its 52-week high is $12.22, and the stock has lost roughly 62% over the past year, the worst record in its group.
Heavy volume accompanies the drop. Roughly 37.2 million shares changed hands by 12:18 p.m. ET, almost four times the usual 9.5 million at that hour. A full session typically brings about 22.6 million.
Stellantis took the biggest hit in a weak group. Among its peers, Winnebago Industries fell most at around 2.8%, followed by General Motors at 2.5% and Honda Motor at 1.7%. The Consumer Discretionary sector ETF (XLY) shed roughly 1.4%, versus a 0.2% decline for the SPDR S&P 500 ETF (SPY).
Stellantis recently reported weaker third-quarter shipments. It estimates around 1.29 million vehicles shipped worldwide, down 1% from last year. North America fell 12%, which wiped out gains in Europe.
Stellantis Joins Wayve and NVIDIA On Autonomous DrivingStellantis also teamed up Friday with Wayve, NVIDIA Corp. (NASDAQ:NVDA) and the French government. The partners announced at the Assises du Véhicule Autonome in Paris that they will work to speed autonomous vehicle rollout in France and across the EU.
Their plan blends Stellantis’ L4-Ready Platforms, engineering and manufacturing know-how with the Wayve AI Driver, which will use NVIDIA Halos OS on the Hyperion compute and sensor architecture. They want France to anchor an ecosystem that spans silicon to finished vehicles, citing its large ride-hailing market.
Transport Minister Philippe Tabarot said France will adapt its rules to speed up autonomous cars, as long as strict safety and data sovereignty standards hold. Stellantis SVP of Technology Research Anne Laliron said the project will bring safer, more convenient autonomous technology to customers. She called France one of the company’s key engineering centers.
STLA Shares Are SlippingSTLA Price Action: Stellantis shares were down 6.09% at $4.01 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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Nvidia Corp (NASDAQ:NVDA) does not need to sustain its explosive growth to deliver another major gain for shareholders, according to one investment chief who believes the market may be underestimating how large the chipmaker can become. Her argument challenges a common investor reflex: treating decelerating growth as a warning sign, even when a company continues to expand earnings at a healthy pace.
Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, believes Nvidia could double over the next five to 10 years even if its earnings growth eventually cools to 20% or 30%. "If it decelerates to 20% or 30% you are still growing," she said in emailed comments, arguing that slower growth does not necessarily mean the stock has run out of upside.
Slower Growth Isn’t Stalled GrowthTengler cited Nvidia’s earnings growth of 96%, which she expects to decelerate to 70% the following year, before potentially settling at 20% to 30%. Those figures reflect her stated outlook and should not be confused with company guidance.
Her broader argument is that percentage growth naturally becomes harder to sustain as a business gets larger. Even at a slower rate, a company with a substantial earnings base can continue adding significant profits.
Tengler pointed to Microsoft Corp‘s (NASDAQ:MSFT) Azure cloud business as an example of how deceleration need not derail a stock. "We went through that with Azure, and the stock was still able to perform," she said.
The comparison offers a useful lens for Nvidia investors. The question is not simply whether growth slows, but whether demand for its chips and related computing infrastructure remains strong enough to support earnings expansion as the business scales.
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A Value Case for Nvidia?Tengler also challenged the assumption that a large technology company cannot qualify as a value investment. She said Nvidia was trading at a 13.5 earnings multiple when her firm added it to its value portfolio earlier in the summer. That is her historical valuation reference, not a current multiple.
"We put it in our value portfolio," Tengler said of Nvidia. She added that the firm had recently done the same with Meta and had invested in Alphabet two years earlier.
Her reasoning rests on the potential for these companies to keep growing despite their size. "These are really big companies but they can double in size," she said. "There’s nothing that says they can’t."
That remains a thesis, not a guarantee. Nvidia could face slower AI infrastructure spending, stronger competition or weaker returns on customers’ AI investments. Any of those developments could pressure earnings expectations and the valuation investors are willing to pay.
What Investors Should WatchThe central question is whether Nvidia can sustain meaningful earnings growth as its business matures. Investors should watch data-center demand, customer spending and profitability for evidence that expansion remains durable.
Tengler’s case is that Nvidia need not repeat its extraordinary growth rates to reward shareholders—but the stock’s long-term upside still depends on earnings delivering, rather than investors simply believing that it will.
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Key Takeaways CoreWeave bonds have sparked AI debt fears.Jensen Huang weighed in on the AI funding fears.Hyperescaler CAPEX spending continues to accelerate.
Funding Fears Threaten AI Bull MarketEarly in the year, investors rushed into tech stocks as AI innovations, investment, and rapid growth expectations drew attention away from the rest of the market. AI-related leaders like Bloom Energy ((BE - Free Report) ), SanDisk ((SNDK - Free Report) ) and Advanced Micro Devices ((AMD - Free Report) ) each soared more than 100%. However, over the past few months, Wall Street’s price action has completely flipped. Although major market indices are within a hair of all-time highs, leading AI-stocks have been lackluster, with many down 50% or more off their 2026 highs.
What Caused the Destruction in AI Stocks?Gravity & Profit TakingFirst, while the correction in AI-related names is undoubtedly painful for bulls (especially those who bought near the highs), corrections of this magnitude are normal in bull markets. For example, SanDisk exploded by ~2,800% from August 2025 to June 2026. In other words, after such a massive move, profit taking is to be expected. Currently, SanDisk is testing its rising 200-day moving average, the best gauge of the long-term trend, for the first time in its history. Again, even the strongest stocks occasionally succumb to the laws of gravity.
Image Source: Zacks Investment Research
The AI Debt Fear Narrative More recently, selling in AI stocks has intensified amid a sharp shift in Wall Street sentiment regarding AI spending and the sustainability of debt loads. The tipping point came when neocloud leader CoreWeave ((CRWV - Free Report) ) saw its unsecured bonds dumped, pushing yields to a distressed 15%. In other words, the move in CoreWeave’s bonds suggests fixed-income investors have far less confidence in the company’s ability to meet its ballooning debt. So far in October, CoreWeave shares have plunged nearly 40%, dragging other neocloud and AI -related stocks like Nebius Group ((NBIS - Free Report) ) along with it.
Image Source: Zacks Investment Research
CoreWeave, which started as a Bitcoin Mining company, pivoted to AI data centers during the 2022 crypto bear market. Today, it is a specialized AI cloud provider that rents out massive clusters of graphics processing units (GPUs) and infrastructure to companies training and running AI models. Building massive AI data centers requires heavy upfront expenses for CoreWeave because its business model demands immediate, large-scale capital spending on infrastructure and hardware before it collects cash from customer contracts.
The Betting Markets Tell a Different StoryI’ve found that betting markets are far more reliable than traditional surveys or opinions because participants have real money at risk. While many headlines suggest a CoreWeave bankruptcy is imminent, the betting markets suggest otherwise. Polymarket bettors assign only an 11% chance of a CoreWeave bankruptcy filing by the end of next year.
Image Source: Zacks Investment Research
Jensen Huang Weighs in on Neocloud Financing ConcernsJensen Huang is the iconic CEO of the world’s largest company and the most important AI company, NVIDIA ((NVDA - Free Report) ). With that in mind, investors can safely assume Huang has the best sense of what’s going on in the AI industry. At the GTC conference in Berlin, Huang weighed in on the neocloud financing concerns, saying:
"Everything else will get solved when demand is high. You can't solve the absence of demand. But when demand is high, everything else will get taken care of. I am quite confident that they will find solutions. Their solution starts with the fact that they have excellent customers. Demand is really high and they just need working capital, and working capital will come.”
NVIDIA is a CoreWeave partner and stakeholder.
Will AI CAPEX Continue to Grow?
The current AI buildout already the largest industrial buildout in history. Because of massive amount of capital already invested, bears are betting that AI CAPEX spending is near a peak. However, the most recent data shows that Ai spending isn’t slowing; it’s actually increasing at a faster rate. SpaceX’s ((SPCX - Free Report) ) earnings call provided valuable clues. 52% of SpaceX’s revenue are derived from AI.
Meanwhile, during SpaceX’s Q3 2026 earnings call, CEO Elon Musk projected that annual recurring revenue (ARR) could reach $500 billion to $1 trillion by the end of 2027. Meanwhile, Wells Fargo expects Meta’s CAPEX to soar to $249 billion in 2027, up from ~$145 billion in 2026. Goldman Sachs Research now projects that hyperscaler CAPEX will soar from $768 billion in 2026 to $1.182 trillion in 2027.
Image Source: Goldman Sachs Research
Bottom Line
Despite the brutal pullbacks in AI-related stocks, debt fears are far overblown and the bullish fundamental case remains rock-solid for the foreseeable future.
Nvidia stock NVDA traded down 0.2% on Friday after falling 4.4% in the previous session, as investors weighed contrasting views on the chipmaker's long-term prospects. Seaport Research Partners reiterated a bearish rating, citing competitive pressures and financial commitments, while Laffer Tengler Investments CEO Nancy Tengler argued that Nvidia could still double in value over the next five to 10 years, even if earnings growth slows.
Corient Private Wealth LP lessened its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 17.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 9,069,030 shares of the computer hardware maker’s stock after selling 1,907,428 shares during the quarter. NVIDIA makes up 2.5% of Corient Private Wealth LP’s holdings, making the stock its 5th biggest position. Corient Private Wealth LP’s holdings in NVIDIA were worth $1,795,911,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds and other institutional investors have also made changes to their positions in the company. Formuepleje A S lifted its holdings in NVIDIA by 0.7% during the 2nd quarter. Formuepleje A S now owns 460,938 shares of the computer hardware maker’s stock valued at $92,229,000 after purchasing an additional 3,410 shares during the last quarter. Tucker Asset Management LLC increased its holdings in shares of NVIDIA by 2.8% in the second quarter. Tucker Asset Management LLC now owns 108,000 shares of the computer hardware maker’s stock valued at $21,610,000 after purchasing an additional 2,930 shares during the last quarter. HORAN Wealth LLC increased its holdings in shares of NVIDIA by 5.6% in the second quarter. HORAN Wealth LLC now owns 57,377 shares of the computer hardware maker’s stock valued at $11,480,000 after purchasing an additional 3,018 shares during the last quarter. Wellington Grp LLC increased its holdings in shares of NVIDIA by 8.7% in the second quarter. Wellington Grp LLC now owns 29,558 shares of the computer hardware maker’s stock valued at $5,914,000 after purchasing an additional 2,376 shares during the last quarter. Finally, Brown Financial Advisors raised its position in shares of NVIDIA by 21.3% in the second quarter. Brown Financial Advisors now owns 42,229 shares of the computer hardware maker’s stock valued at $8,450,000 after purchasing an additional 7,404 shares during the period. 65.27% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In Several brokerages have recently weighed in on NVDA. Morgan Stanley set a $230.00 price objective on shares of NVIDIA in a research report on Friday, October 2nd. Zacks Research raised shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. Truist Financial boosted their price objective on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Mizuho set a $315.00 target price on NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Finally, KeyCorp reiterated an “overweight” rating and set a $330.00 target price on shares of NVIDIA in a research note on Monday, August 24th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $321.47.
Check Out Our Latest Stock Analysis on NVIDIA Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. Insider Activity In related news, 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 completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This trade represents a 1.12% 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. Over the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock.
NVIDIA Price Performance NASDAQ:NVDA opened at $212.21 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’s 50-day simple moving average is $222.86 and its 200 day simple moving average is $212.57. The firm has a market cap of $5.11 trillion, a price-to-earnings ratio of 26.83, a P/E/G ratio of 1.71 and a beta of 2.22.
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. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’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. As a group, sell-side analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.
NVIDIA Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
NVIDIA declared that its board has approved a share buyback plan 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 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.
NVIDIA Company Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Featured Stories Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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Groupe la Francaise grew its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.3% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,618,791 shares of the computer hardware maker’s stock after acquiring an additional 107,074 shares during the quarter. NVIDIA accounts for 6.2% of Groupe la Francaise’s portfolio, making the stock its biggest holding. Groupe la Francaise’s holdings in NVIDIA were worth $520,898,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds have also added to or reduced their stakes in NVDA. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the 1st quarter worth about $27,000. Montgomery Financial Services LLC purchased a new stake in NVIDIA during the 2nd quarter valued at about $28,000. Langley Wealth Management LLC purchased a new stake in NVIDIA during the 2nd quarter valued at about $34,000. Phillip James Consulting Co. purchased a new stake in NVIDIA during the 1st quarter valued at about $40,000. Finally, Bard Associates Inc. grew its position in NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after purchasing an additional 266 shares during the last quarter. 65.27% of the stock is owned by institutional investors.
Insiders Place Their Bets In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction 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 of the company’s stock, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company’s stock.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week: Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. NVIDIA Price Performance NVDA opened at $212.21 on Friday. 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 $5.11 trillion, a P/E ratio of 26.83, a P/E/G ratio of 1.71 and a beta of 2.22. The company’s 50-day simple moving average is $222.86 and its two-hundred day simple moving average is $212.57. 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 announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during 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 business’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the previous year, the business posted $1.05 earnings per share. As a group, analysts predict that NVIDIA Corporation will post 9.30 EPS for the current year.
NVIDIA announced that its board has approved a share repurchase plan on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.
NVIDIA Announces Dividend The business also recently announced 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 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.
Analyst Upgrades and Downgrades A number of research firms have weighed in on NVDA. Rosenblatt Securities restated a “buy” rating and set a $390.00 price objective on shares of NVIDIA in a research note on Tuesday, September 29th. Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Rothschild & Co Redburn increased their price target on shares of NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research report on Thursday, October 1st. Finally, Evercore set a $465.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA has an average rating of “Buy” and a consensus target price of $321.47.
Check Out Our Latest Research Report on NVIDIA
NVIDIA Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Read More Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check 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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Empirical Finance LLC increased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.5% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 844,676 shares of the computer hardware maker’s stock after acquiring an additional 28,693 shares during the period. NVIDIA makes up 7.0% of Empirical Finance LLC’s investment portfolio, making the stock its largest holding. Empirical Finance LLC’s holdings in NVIDIA were worth $169,011,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also bought and sold shares of NVDA. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA in the 1st quarter worth approximately $27,000. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA in the 2nd quarter worth approximately $28,000. Langley Wealth Management LLC bought a new position in NVIDIA during the 2nd quarter valued at approximately $34,000. Phillip James Consulting Co. bought a new position in NVIDIA during the 1st quarter valued at approximately $40,000. Finally, Bard Associates Inc. increased its position in NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after buying an additional 266 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Wall Street Analyst Weigh In
A number of brokerages have issued reports on NVDA. JPMorgan Chase & Co. lifted their price objective on NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research note on Thursday, August 27th. Jefferies Financial Group reissued a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Truist Financial raised 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. Evercore set a $465.00 price target on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Finally, KeyCorp reaffirmed an “overweight” rating and issued 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 given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, NVIDIA currently has a consensus rating of “Buy” and an average price target of $321.47.
Check Out Our Latest Stock Analysis on NVIDIA
NVIDIA Price Performance
Shares of NASDAQ NVDA opened at $212.21 on Friday. The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.71 and a beta of 2.22. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company has a 50 day moving average of $222.86 and a 200 day moving average of $212.57.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business posted $1.05 EPS. The company’s revenue was up 105.9% compared to the same quarter last year. As a group, research analysts expect that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.
NVIDIA Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s payout ratio is currently 12.64%.
NVIDIA announced that its Board of Directors has approved a share repurchase program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.
Key NVIDIA News
Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce
Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories
Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs.
Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA.
Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations.
Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations.
Insider Activity
In related news, CFO Colette Kress sold 34,918 shares of the 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 sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. 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 Stevens sold 622,239 shares of the stock in a transaction 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 sale, the director directly owned 2,336,531 shares in the company, 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. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. 3.94% of the stock is currently owned by corporate insiders.
NVIDIA Company Profile
(Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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Formuepleje A S boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 0.7% during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 460,938 shares of the computer hardware maker’s stock after purchasing an additional 3,410 shares during the period. NVIDIA accounts for 7.2% of Formuepleje A S’s investment portfolio, making the stock its biggest holding. Formuepleje A S’s holdings in NVIDIA were worth $92,229,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Retirement Wealth Solutions LLC grew its holdings in shares of NVIDIA by 1.2% during the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock valued at $825,000 after buying an additional 47 shares in the last quarter. LightSquare Wealth Management LLC raised its position in NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after buying an additional 49 shares during the period. Defender Capital LLC. lifted its stake in NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after acquiring an additional 50 shares in the last quarter. Kooman & Associates lifted its stake in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after acquiring an additional 50 shares in the last quarter. Finally, Roof Eidam Maycock Peralta LLC lifted its stake in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock worth $3,767,000 after acquiring an additional 50 shares in the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth NVDA has been the subject of a number of research reports. Stifel Nicolaus set a $315.00 price objective on NVIDIA in a research report on Thursday, August 27th. Royal Bank Of Canada upped their target price on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $350.00 target price on shares of NVIDIA in a report on Thursday, October 1st. Wells Fargo & Company set a $210.00 price target on shares of NVIDIA in a report on Friday, October 2nd. Finally, Yorkville Ives started coverage on shares of NVIDIA in a research report on Tuesday, October 6th. They set an “outperform” rating and a $300.00 price objective on the stock. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and a consensus target price of $321.47.
Get Our Latest Report on NVIDIA Insider Buying and Selling In related news, EVP Timothy Teter sold 30,460 shares of the stock in a transaction that occurred on 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 in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. 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. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. NVIDIA Stock Performance Shares of NASDAQ NVDA opened at $212.21 on Friday. The business’s 50-day moving average price is $222.86 and its two-hundred day moving average price is $212.57. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA Corporation has a one year low of $164.27 and a one year high of $243.37. The company has a market capitalization of $5.11 trillion, a P/E ratio of 26.83, a price-to-earnings-growth ratio of 1.71 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share 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 during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business earned $1.05 EPS. The business’s quarterly revenue was up 105.9% on a year-over-year basis. Analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.
NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio is currently 12.64%.
NVIDIA announced that its board has initiated a stock repurchase plan on Monday, September 28th that allows the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.
About NVIDIA (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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HighTower Advisors LLC lessened its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,407,961 shares of the computer hardware maker’s stock after selling 305,188 shares during the period. NVIDIA makes up 1.4% of HighTower Advisors LLC’s holdings, making the stock its 11th biggest position. HighTower Advisors LLC’s holdings in NVIDIA were worth $1,482,259,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Kirkwood Financial Services acquired a new stake in NVIDIA during the second quarter worth about $864,000. Tobias Financial Advisors Inc. raised its position in NVIDIA by 50.0% during the second quarter. Tobias Financial Advisors Inc. now owns 29,786 shares of the computer hardware maker’s stock valued at $5,960,000 after acquiring an additional 9,924 shares in the last quarter. Groupe la Francaise raised its position in NVIDIA by 4.3% during the second quarter. Groupe la Francaise now owns 2,618,791 shares of the computer hardware maker’s stock valued at $520,898,000 after acquiring an additional 107,074 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in NVIDIA in the second quarter valued at approximately $1,036,586,000. Finally, Financial Insights Inc. lifted its holdings in NVIDIA by 1.3% in the second quarter. Financial Insights Inc. now owns 16,681 shares of the computer hardware maker’s stock valued at $3,338,000 after acquiring an additional 219 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity at NVIDIA In related news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction 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 completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction 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 of the company’s stock, valued at $598,810,648. This represents a 1.12% 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 quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by company insiders.
NVIDIA Stock Down 4.4% Shares of NVDA opened at $212.21 on Friday. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $243.37. The stock’s 50 day moving average is $222.86 and its two-hundred day moving average is $212.57. The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.71 and a beta of 2.22. 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, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business’s revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.05 earnings per share. Analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.
NVIDIA declared that its board has authorized a stock repurchase program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.
NVIDIA Dividend Announcement 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. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
Key NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. Analyst Upgrades and Downgrades Several research firms have commented on NVDA. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a research report on Monday, September 21st. BMO Capital Markets set a $340.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. China Renaissance boosted their target price on shares of NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, August 31st. UBS Group reissued a “buy” rating on shares of NVIDIA in a report on Friday, October 9th. Finally, Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $321.47.
Read Our Latest Stock Report on NVIDIA
About NVIDIA (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Read More Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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HORAN Wealth LLC boosted its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 5.6% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 57,377 shares of the computer hardware maker’s stock after purchasing an additional 3,018 shares during the period. NVIDIA comprises 1.4% of HORAN Wealth LLC’s investment portfolio, making the stock its 15th biggest position. HORAN Wealth LLC’s holdings in NVIDIA were worth $11,480,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently bought and sold shares of NVDA. Jupiter Topco LLC purchased a new position in shares of NVIDIA in the second quarter valued at $16,156,076,000. Van ECK Associates Corp raised its stake 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 buying an additional 19,522,304 shares during the last quarter. Amundi boosted its position in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. Nykredit A S purchased a new stake in shares of NVIDIA in the 2nd quarter worth about $2,315,956,000. Finally, SEB Asset Management AB purchased a new stake in shares of NVIDIA in the 1st quarter worth about $1,692,807,000. 65.27% of the stock is owned by institutional investors and hedge funds.
Insiders Place Their Bets In related news, Director Mark A. Stevens sold 622,239 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Insiders own 3.94% of the company’s stock.
Analysts Set New Price Targets NVDA has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of NVIDIA in a research note on Monday, August 31st. DA Davidson restated a “buy” rating and set a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Wells Fargo & Company set a $210.00 price target on shares of NVIDIA in a report on Friday, October 2nd. Melius Research set a $420.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Finally, DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. 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’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $321.47. Read Our Latest Analysis on NVDA
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. NVIDIA Stock Down 4.4% NVDA opened at $212.21 on Friday. The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.71 and a beta of 2.22. The business’s fifty day simple moving average is $222.86 and its 200 day simple moving average is $212.57. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.
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 the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the previous year, the company posted $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.
NVIDIA declared that its Board of Directors has authorized a stock buyback plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.
NVIDIA Announces Dividend 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 dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
NVIDIA Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Read More Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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Wall Street already sees more than 50% upside in NVIDIA, but one analyst thinks even that target is too conservative. Here is the specific combination of catalysts that could push shares well beyond what most investors are pricing in.
Jensen Huang put it simply in August: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” That line explains why NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) remains the center of the AI expansion.
Shares are up 15.08% year-to-date at $214.13, even after a 6.61% drop last week tied to a global tech rout on AI funding worries. Over five years, the stock has gained 883.76%. I think that decline sets up the next leg. Here’s what NVIDIA needs to do to hit $350 in 2027.
Wall Street Already Sees More Than 50% Upside
The consensus price target sits at $328.72, roughly 54% above today’s price. Analysts are nearly unanimous, with 10 Strong Buy and 49 Buy ratings against 1 Sell.
Estimates keep climbing. Fiscal 2028 EPS forecasts rose from $12.7636 90 days ago to $15.9146, with 7 upward revisions and 0 downward over the last 30 days. In the latest quarter, EPS of $2.22 topped the $2.09 consensus, marking a fifth consecutive earnings beat, on revenue up 105.8%.
Here’s What It Takes for NVIDIA to Reach $350
At $214.13, NVIDIA changes hands at about 13x fiscal 2028 earnings estimates. At $350, that multiple would be roughly 22x, close to a market-average valuation for a company projected to grow EPS about 71% from fiscal 2027’s $9.3124 estimate.
How might NVIDIA reach $350?
Vera Rubin: Management expects the fastest product ramp in company history, lifting revenue opportunity per gigawatt from $25 billion with Blackwell to $40 billion.
Hyperscaler capex: Top-five hyperscaler spending is expected to reach $1.3 trillion in 2027, and AWS is deploying an additional 2 million GPUs.
Untapped demand: Management guided to roughly 70% fiscal 2028 revenue growth while noting “Customers’ forecasts point to our growth doubling next year.” Supply, rather than demand, is the limiting factor.
Beat streak: Five straight beats suggest actual results may outrun forecasts again.
All of that expansion has to be powered, cooled, and networked by somebody other than NVIDIA, which is why we rounded up seven non-chip AI infrastructure names in a free report you can grab here.
NVIDIA’s History Says a 63% Gain Is Within Reach
Hitting $350 requires a 63% gain. NVIDIA has posted triple-digit annual returns in 2016, 2021, 2023, and 2024, and shares are up 13002.9% over ten years.
With a market cap near $5.17 trillion, repeating those moves is harder, but a beta of 2.216 means big swings remain part of this stock’s character.
Is $350 Realistic? Here’s My Take
Reaching $350 asks for a 63% gain, but Wall Street already projects about 54% upside and estimates are rising. The challenges are real: guidance assumes zero China data center compute revenue, supply commitments reached $279 billion, and AI funding worries could weigh on the group.
A 22x multiple on next year’s earnings looks reasonable, assuming Vera Rubin ramps as planned and NVIDIA keeps beating expectations. Such returns shouldn’t be expected every year, but we’ve outlined the blueprint for how NVIDIA could see outsized returns in 2027.
Contact [email protected] for any questions or corrections.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nvidia (NVDA - Free Report) .
Nvidia currently has an average brokerage recommendation (ABR) of 1.13, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 53 brokerage firms. An ABR of 1.13 approximates between Strong Buy and Buy.
Of the 53 recommendations that derive the current ABR, 49 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 92.5% and 5.7% of all recommendations.
Brokerage Recommendation Trends for NVDA
Check price target & stock forecast for Nvidia here>>>
While the ABR calls for buying Nvidia, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NVDA Worth Investing In?Looking at the earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $9.3.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Nvidia. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.
Every time NVIDIA pulls back, the same question resurfaces: is the selloff a warning sign or a rare entry point into the most entrenched platform in AI computing? The answer depends on one software layer that almost nobody talks about.
I have bought NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) on dip after dip, and this latest slide put the stock back at the top of my research list. Shares fell 4.4% in the most recent session and 7.28% over the past month, closing at $212.21. That pullback stands out given NVIDIA’s position in AI computing.
Why I Keep Coming Back to NVIDIA
My thesis comes down to one point. AI models run on NVIDIA, and the CUDA software layer makes leaving expensive. On the August call, CEO Jensen Huang said “Our position in open models is very good because the CUDA ecosystem is literally everywhere.” Developers write for CUDA, clouds rent CUDA, and each new chip generation inherits that installed base. That lock-in strengthens with each chip generation.
Three Reasons My Conviction Keeps Growing
First, growth at scale. Revenue for the second quarter of fiscal 2027 reached $96.22B, up 105.8% year over year. Data Center revenue hit $89.02B, up 117%, and networking grew 138%. That tells me customers buy the whole AI factory, chips and connections together. Guidance calls for $108.0B ±2% next quarter.
Second, profitability. NVIDIA runs a 71.07% gross margin, a 60.38% operating margin, and a 101.49% return on equity. Fiscal 2026 free cash flow came in at $96.58B.
The balance sheet and capital return also look strong. Its debt-to-equity stands at 0.073, and interest coverage at 503.42x. NVIDIA returned about $26.0B in Q2 and holds $99.0B of remaining buyback authorization. The 0.019% yield pays me little, so I own this for compounding, and a P/E of 43 looks reasonable for that growth rate.
Why AMD and Broadcom Trail NVIDIA in My Analysis
Advanced Micro Devices (NASDAQ:AMD) grew Data Center revenue 107% last quarter. Still, it trades at a P/E of 191, with a gross margin near 49.5%, and its Q2 free cash flow fell 9.89%. AMD itself lists ROCm’s competition with established developer ecosystems as a risk.
Broadcom (NASDAQ:AVGO) posted AI semiconductor revenue of $16.70 billion, up 221%. Its own filings flag dependence on a limited number of AI customers and significant indebtedness. I prefer NVIDIA’s near-debt-free platform.
Risks I Track Every Quarter
Supply commitments rose to $279.0B from $119.0B one quarter earlier, mostly linked to Vera Rubin memory. Days sales outstanding extended to 60 days from 45, and guidance excludes China Data Center compute. If AI spending stalls, those commitments could hurt margins and cash flow.
Demand still exceeds supply. Huang said “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%.” NVIDIA holds Vera Rubin purchase orders from every major hyperscaler, AI cloud and system OEM. Those orders make the commitments look like preparation to me.
What Keeps NVIDIA at the Top of My Watchlist
NVIDIA’s revenue opportunity per gigawatt rises to $40 billion with Vera Rubin from $25 billion with Blackwell. Top hyperscaler capex should reach nearly $800 billion in 2026 and $1.3 trillion in 2027. The stock has returned 837.87% over five years, and my long-term view remains the same. The expansion also needs power, cooling, and networking suppliers that rarely make the headlines, which we profiled in a free report on seven AI infrastructure stocks that aren’t chipmakers.
Contact [email protected] for any questions or corrections.
Short sellers piled into AI data center stocks and walked away with billions in October gains, but a $76 billion funding gap and bond yields near 15% suggest the pain for these companies may have only just started.
Short sellers in U.S. neocloud and AI data center stocks held about $6 billion in October paper profits through October 22, 2026, by ORTEX’s estimate. These gains are unrealized and get marked again at every close, so they can disappear quickly.
CoreWeave (NASDAQ:CRWV) fell 10.06% to $55.60 on October 22, leaving it with a $30.67 billion market value. During the session it reached $53.50, which is now the bottom of a 52-week range that tops out at $141.79. About 79.7 million shares changed hands, roughly 122% above the three-month average.
Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) fell 7.23% to $159.17, a $43.63 billion market value, on the same day it announced new financing from Citi. Demand for AI computing looks strong, but investors doubt these companies can pay for the expansion that demand requires.
What Short Sellers Actually Won in October Nebius shorts made the most in October, $2.94 billion, but for 2026 as a whole they still show a $3.33 billion paper loss. That is because the stock is still up 90.16% year-to-date.
CoreWeave shorts made close to $1.7 billion. Shorts in IREN (NASDAQ:IREN) and Applied Digital (NASDAQ:APLD) made $1.2 billion-plus between them. CoreWeave is the clearer win for shorts, since the stock is down 22.36% for 2026.
From September 30 to October 22, CoreWeave fell about 36% from $87.12. Nebius fell about 33% from $235.88 over that span.
How Crowded the Short Trade Has Become Across the group’s five most-shorted names, short interest runs about 20% to 26% of free float. Free float refers to the shares actually available to trade. CoreWeave’s figure is 23.7%, up from 19.6% at the start of October and 22.7% in January. Nebius rose to 20% from 15.4%.
About $17 billion of stock is sold short across those names, and borrowing the shares is still cheap. Low fees let shorts hold their positions for months. The risk is that a crowded trade can reverse fast. If good news forces many shorts to buy shares back at the same time, the price jumps, and that is called a short squeeze.
Debt Math Driving the Selloff Bernstein kept its Underperform rating on CoreWeave and cut its price target to $51 from $74. The firm estimates CoreWeave needs about $85 billion to deliver on its existing contracts. Current facilities cover about $9 billion of that, leaving roughly $76 billion to raise from outside. If the company sells stock to fill that gap, existing shareholders get diluted.
CoreWeave’s unsecured bonds recently yielded around 15%, and its 2032 notes yielded near 14.8%. Double-digit yields mean lenders see real default risk, and the bond market often signals trouble before the stock market does.
Nearly half of the data center bonds sold in 2026 are junk-rated, meaning rated below investment grade. That junk total is more than four times last year’s. Bonds linked to data centers that CoreWeave rents yield about 11% on average.
New Money That Didn’t Calm the Market Nebius’s $3.5 billion senior secured facility from Citi will pay for data center development and GPU purchases. It charges Term SOFR, a benchmark lending rate, plus 2.75%, and that margin can rise to a maximum of 3.50%. The company’s COO, Ophir Nave, said, “This facility provides additional financing to support our near-term capacity build-out.”
The stock fell anyway. The loan matures in 364 days, so Nebius will face the refinancing question again within a year.
Can AI Data Center Stocks Close Their Funding Gap? The most bullish voices have a stake in the result. NVIDIA (NASDAQ:NVDA) CEO Jensen Huang said at GTC Berlin that “the demand for the neoclouds is off the charts” and that the capital shortage is “going to get solved.” NVIDIA sells the GPUs these companies borrow to buy, and its own stock fell 4.40% to $212.21 on October 22.
Blackstone President and COO Jon Gray said “the underlying business is actually quite strong” and thinks CoreWeave can get through its financing pressure. He also claims compute pricing is up 50% for neoclouds that make it through. That figure is his opinion and has not been verified. Whatever happens to the neoclouds, the power, cooling, and networking suppliers behind the data centers keep collecting checks, which is why we pulled seven of them into a free report on the AI buildout.
For now, the bear case is stronger. Strong demand still leaves a $76 billion funding gap at CoreWeave, and bond yields near 15% show lenders are worried too. NVIDIA gets paid for its chips without carrying the neoclouds’ funding gap.
The next test comes with third-quarter reports, which are expected but not confirmed by the companies: IREN around November 5, CoreWeave around November 9, and Nebius around November 10. If CoreWeave closes below $53.50, or its unsecured bond yields stay near 15% after it reports, the short sellers’ case holds.
Contact [email protected] for any questions or corrections.
This report is from this week's The Tech Download newsletter. Like what you see? You can subscribe here.
Jensen Huang has been busy.
Nvidia's GTC in Berlin was the grand finale of a week-and-a-half whistle stop European tour. Huang met with world leaders — including U.K. Prime Minister Andy Burnham, French President Emmanuel Macron and German Chancellor Friedrich Merz — announced new products and even spent time talking to small robot ducks on stage.
The Nvidia chief must be tired. At a media Q&A on Thursday morning, he gave reporters an insight into his mantra. Talking about bringing data centers online faster, Huang said: "Try less sleep, which is what I do."
And the trip's not over for Huang. Today, he's in Kazakhstan, touting the country's potential as a major AI hub.
Amid all the activity in Germany, I spent two days in Berlin running around meeting with neocloud execs, investors and data center builders and suppliers.
Here are the main themes that came up.
Neocloud distressThe final day of the conference came amid a selloff among public neocloud stocks. CoreWeave ended the day down 10% and Nebius dropped 7% by market close.
It continued a tumultuous period for companies leasing AI compute, with many of their stocks plummeting on concerns over heavy borrowing.
Huang — perhaps unsurprisingly considering Nvidia's sizeable stakes in many of those companies — was more bullish.
"If you look at the fundamentals, the demand for the neo clouds is off the charts," Huang told CNBC.
Despite that, there was concern about the neocloud sector among many of the folk I spoke to at GTC. The "magnitude of businesses with no credit rating" was "freaking the market out," said one exec at an AI infrastructure company I met with.
Data centers are getting smaller Speaking onstage in Berlin, Huang announced a new product that packs seven of Nvidia's Vera Rubin AI racks into a shipping container and is designed to be transported on normal roads.
It's a play to get AI compute online more quickly amid huge demand. Huang told the audience that billions of dollars in revenue can be lost by delays in getting data centers up and running.
"By moving this into the supply chain, the speed by which we can turn on" will ramp up, he said.
Major compute consumers are already exploring opportunities for smaller data center deployments. Sources had told me in September that OpenAI and Anthropic have been hunting for smaller AI data center deals.
Capital could be the next big bottleneckAI infrastructure is hugely expensive to build.
Goldman Sachs estimates that AI-related capital spending could total about $7.6 trillion from 2026 through 2031, across compute, data centers and power.
A 1 gigawatt data center costs about $50 billion, Huang told the Berlin audience on Wednesday.
"What is missing in the middle is the working capital to fuel that growth… because there's just so much demand across so many sectors of AI, there's a scarcity of capital," he said during his CNBC interview on Thursday.
"The demand of the capital is much greater than the availability of the capital," he told my colleague Arjun Kharpal, though the CEO added: "That's going to get solved."
One person I spoke to on the sidelines, an exec at an AI infrastructure financing company, said "very soon capital will become the bottleneck."
watch now
News editOpenAI nears up to $30 billion funding round at $1.25 trillion valuation led by UAE investors.
Musk said Tesla and SpaceX formed special committees to discuss merger, on an earnings call this week.
Trump said data centers should pay communities a 'dividend' to win support, amid public backlash about the facilities.
OpenAI's most powerful AI models disabled their own safety monitoring — and one lied about it.
The Trump administration banned Chinese AI startup DeepSeek from civilian U.S. government agencies, citing security concerns.
One more thingYesterday, my colleagues Annie Palmer and Lora Kolodny dug into the accelerating demand for alternative satellite internet services, amid Ukraine's problems with SpaceX's Starlink and Starshield.
But, as they write, few alternatives to the company's systems exist and other options are not yet comparable.
Competitive pressures are mounting for Nvidia stock and there is a strategic tension at the heart of the business, according to Seaport Research. There are other reasons to sell the stock.
Apple just hit a record close while Nvidia shed billions in a brutal sector selloff, and the gap between the two most valuable companies on earth has shrunk to a fraction of what it was one week ago.
Apple (NASDAQ:AAPL | AAPL Price Prediction) closed Thursday at a record $348.22. That put its market value at $5.082 trillion, just $42 billion behind Nvidia (NASDAQ:NVDA) at $5.124 trillion.
About a week earlier, Apple needed a gain of about 7% to catch Nvidia. If Nvidia holds flat, Apple now needs about 0.83%, which works out to roughly $351.10 a share.
Apple rose $4.23, or 1.23%, after setting an all-time intraday high of $348.36. Nvidia fell $9.76, or 4.40%, to $212.21. Apple has not passed Nvidia yet, and a small move in either stock could flip the order.
Alphabet (NASDAQ:GOOGL) at $3.965 trillion, Microsoft (NASDAQ:MSFT) at $3.869 trillion and Amazon (NASDAQ:AMZN) at $2.701 trillion are far behind, so only two companies are in this race.
AI Chip Selling Handed Apple Most of the Ground The Nasdaq Composite fell 2.60%, or 694 points, to 26,008.86, its steepest daily drop since early June. The Philadelphia Semiconductor Index lost 6.7%, its worst day since June 23, and four major chip and memory stocks each fell more than 8%.
“This is the most widespread selling of the AI trade we have seen all year,” said Michael O’Rourke of Jones Trading. When a whole sector sells off together, the mood around AI is the likely cause of Nvidia’s drop, more than anything specific to the company.
The longer trend also favors Apple, which gained 1.82% over the past week and is up 28.44% this year. Nvidia fell 2.31% for the week and 7.28% for the month, which leaves it up 14.05% for the year.
At 7:59 p.m. ET, Apple was up 0.11% after hours at $348.60, and Nvidia was up 0.09% at $212.40, leaving the gap about the same.
Nvidia’s Buyers Have Demand but Need Funding On Thursday, Jensen Huang said demand from neocloud companies is “off the charts” but “capital is scarce.” Demand only turns into chip orders when buyers can pay for them. If these customers can’t raise enough money, Nvidia’s sales could hit a ceiling no matter how strong interest is.
Apple Stayed Out of the AI Spending Race Apple last closed above Nvidia on July 27, at about $4.94 trillion versus about $4.75 trillion. That day, Jay Woods of Freedom Capital Markets said: “Once criticized for not spending more on AI, they have been able to avoid some of those capex pitfalls.”
The iPhone Duo, Apple’s first foldable, starts at $1,999 and goes on sale today. Online orders “sold out in minutes,” and nearly every configuration now shows delivery on January 25. That could push some revenue into later quarters.
Apple’s November 2 Report Could Decide the Race Apple reports fiscal fourth-quarter results on November 2, the first earnings call for CEO John Ternus. In July, Apple guided to 9%-11% revenue growth and warned that supply would get tighter. At a record price and 45 times earnings, a weak report would likely end the chase.
Nvidia trades at 43 times earnings after revenue grew 105.8% last quarter, and it reports around November 18. The company growing much faster now has the lower multiple, and if AI selling eases, Nvidia would likely pull further ahead of Apple again.
The selloff in chips is a reminder that the AI trade now runs through the companies supplying power, cooling, and networking to the data centers, not just the chipmakers. We profiled seven of those suppliers in a free report you can grab here.
Contact [email protected] for any questions or corrections.
DIAMOND BAR, Calif.--(BUSINESS WIRE)---- $negg #AIPC--Newegg (Newegg Commerce, Inc., NASDAQ: NEGG), a global leader in computer and technology products, today announced that NVIDIA RTX Spark™ laptops are now available to order. Customers in the U.S. and Canada can order now at Newegg.com and Newegg.ca, starting with the MSI Prestige N16 Flip AI+.NVIDIA RTX Spark unites NVIDIA AI, RTX graphics and unified memory in one slim, powerful Windows PC. It is designed to run larger AI models locally—without cloud depend.
Apple Inc. (NASDAQ:AAPL) is in the spotlight Friday, with the stock closing in on Nvidia Corporation (NASDAQ:NVDA) as the world’s most valuable company, the iPhone Duo hitting stores today and earnings a week and a half away all drawing attention.
Apple stock is approaching key resistance levels. Why did AAPL hit a new high? Apple Is $42 Billion Behind Nvidia in the Race to Be the World’s Most Valuable CompanyApple closed at a record $348.22 Thursday, putting its market value at $5.082 trillion, just $42 billion behind Nvidia at $5.124 trillion, according to 24/7 Wall St. A gain of about 0.83% would close the gap. Apple last closed above Nvidia on July 27, and it first topped $5 trillion on Oct. 14. Nvidia’s lead was about $903 billion on Oct. 6, and Benzinga reported it had shrunk by nearly $570 billion in six trading sessions as concerns about the cost of the AI build-out weighed on the chip maker. Apple’s restrained AI infrastructure spending may be working in its favor, Benzinga said.
Tough reviews of the foldable iPhone Duo haven’t shaken Apple’s bulls, according to Yahoo Finance. 24/7 Wall St. noted that Apple trades at about twice Nvidia’s forward price-to-earnings ratio, so a market-cap lead could prove short-lived.
The iPhone Duo, Apple’s First Foldable, Hits Stores TodayThe iPhone Duo goes on sale today after pre-orders sold out within moments on Oct. 16 and shipping dates slipped to Nov. 16 and Nov. 23, according to AppleInsider. It said Apple is believed to have made fewer iPhone Duos than normal, so the sellout is harder to read, but that stores will have at least some stock today. The phone will not appear in Apple’s fiscal fourth quarter, which ended Sept. 26.
Apple to Report Fiscal Fourth-Quarter Results Nov. 2Apple is due to report its fourth-quarter results after the market closes on Nov. 2. Analysts estimate earnings per share of $1.98 on revenue of $113.23 billion. Apple has guided to revenue growth of 9% to 11% and a gross margin of 47% to 48%. In the third quarter, Apple reported earnings per share of $2.02, beating the consensus estimate of $1.89, and revenue of $109.42 billion, beating the consensus estimate of $108.65 billion.
What to Watch: December Quarter Outlook, iPhone Demand and MarginsInvestors will be closely tracking Apple’s December-quarter guidance, since the iPhone Duo launches in it and sales of the iPhone 18 Pro, which Apple launched in September, will run the full quarter. JPMorgan analyst Samik Chatterjee expects December-quarter earnings per share of $2.81, about 4% below the consensus estimate of $2.92, and about 8.5 million iPhone Duo units. Gross margin will also be in focus.
Apple guided to 47% to 48% for the fourth quarter, down from 50.1% in the third quarter, which included about 2 points from tariff refunds, while citing memory costs and supply constraints. Services growth and any update on the planned December launch of Apple Intelligence in China will also be watched.
Read Next
Apple Shares Trade FlatAAPL Price Action: At the time of publication, Apple shares are trading 0.26% lower at $347.31, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Amundi lessened its stake in NVIDIA Corporation (NASDAQ: NVDA) by 3.2% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 129,523,550 shares of the computer hardware maker's stock after selling 4,244,468 shares during the quarter. NVIDIA makes up 6.3%
Brown Financial Advisors increased its holdings in NVIDIA Corporation (NASDAQ: NVDA) by 21.3% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 42,229 shares of the computer hardware maker's stock after purchasing an additional 7,404 shares during the quarter. NVIDIA
Kazakhstan may not be the first place that comes to mind when thinking about the global artificial intelligence boom, but several Big Tech companies have taken interest — including Nvidia.
Nvidia CEO Jensen Huang, who made his first visit to Kazakhstan on Friday, said the country could become a major AI computing hub serving Europe, pointing to its energy resources and plans to expand data center capacity.
Sitting in a fireside chat in Astana with Zhaslan Madiyev, Kazakhstan's deputy prime minister and minister of artificial intelligence and digital development, Huang highlighted the country's role.
It's going to be a hub, a computing hub, an AI factory hub for all of Europe.
Jensen Huang
CEO, Nvidia
He also emphasized the importance of countries developing their own AI capabilities, saying nations should have the infrastructure to deliver AI services domestically, while adapting the technology to their own languages and cultures.
The visit comes as Kazakhstan seeks to attract billions of dollars in technology investment and position itself as a regional hub for artificial intelligence.
Kazakhstan's multibillion-dollar AI ambitionsKazakhstan has made AI a national priority, declaring 2026 the Year of Digitalization and Artificial Intelligence as part of a broader effort to develop its digital economy.
In June, Kazakhstan's government announced plans for a $10 billion AI infrastructure investment in partnership with U.S.-based AI cloud company Firebird, aimed at building a computing cluster powered by 100,000 advanced GPUs, including Nvidia chips.
Nvidia intends to invest in the company, which is pursuing an approximately 2-gigawatt AI infrastructure expansion across Armenia, Kazakhstan and other market, as stated in the chipmaker's announcement.
Meanwhile, San Francisco-based AI video startup Higgsfield also has a significant presence in Kazakhstan, with more than 300 people working across its engineering and creative teams there.
The company's co-founder, Kazakhstani AI engineer Yerzat Dulat, told CNBC exclusively that "building a team in Kazakhstan was an unexpected bet for many. Today, we're backed by some of the most influential names in technology and media."
Jensen Huang's first visit to Astana is the perfect moment to share this news, as Kazakhstan becomes Central Asia's AI hub.
Yerzat Dulat
Co-Founder, Higgsfield
Higgsfield said Friday that Nvidia and investment firm TCV had invested in an extension of its Series B funding round, yet it did not disclose the amount. Earlier, the AI video startup company had also raised $400 million in a Series B funding round at a $5.4 billion valuation in August.
"The first thing and the last thing is you invest in people, not companies. And the founders of Higgsfield are visionary in the work that they do" Huang said in a fireside chat.
At the center of the initiative is Data Center Valley, a planned AI infrastructure hub in Ekibastuz with 300 megawatts of power capacity is already available with plans to expand to 1 gigawatt.
Kazakhstan is promoting its competitive electricity costs, large land reserves and investment incentives as advantages for international data center developers, as demand for computing capacity continues to grow — and some of that investment push is already taking shape.
Kazakh President Kassym-Jomart Tokayev said earlier this month that two supercomputing clusters powered by Nvidia technologies had already been launched in the country.
Other international companies have also announced plans to invest in Kazakhstan's digital infrastructure.
According to the country's digital development ministry, Singapore-based GK Hyperscale has also signed an agreement with Kazakhstan's government to develop two hyperscale data centers, with an expected investment of $1.5 billion and a combined IT capacity of 200 megawatts.
The project also includes a planned $1.2 billion investment in power infrastructure, with construction initially scheduled to begin in early 2026 and the first data center module expected to become operational in 2027.
China's growing connection to Central AsiaThe growing corporate interest in Kazakhstan also extends beyond the AI industry.
German's Volkswagen has revamped its push into Central Asia this year, announcing in late June that for the first time its China business and factories was leading vehicle exports to another country, in this case Uzbekistan.
A few weeks later, the automaker announced entry into Kazakhstan.
The expansion illustrates how international companies are looking beyond China for new customers while using their existing Chinese manufacturing operations to serve neighboring markets.
In a "Tianjin Declaration" at the close of the SCO Summit in 2025, members of the security organization noted the potential of platforms such as an AI innovation center in Kazakhstan.
This year's SCO event on artificial intelligence took place earlier this month in Kazakhstan's capital, Astana, bringing together representatives from member states to discuss national AI strategies, regulation and opportunities for technological cooperation.
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #CariGenetics--The platform will strengthen the secure management and analysis of genomic and associated health data and address diversity in population studies.
Ride-hailing company inDrive, known for letting passengers and drivers negotiate fares, is working with Chinese autonomous driving firm Pony.ai and Nvidia to begin testing robotaxis in Kazakhstan in 2027.
The companies said Friday that they had signed a memorandum of understanding to explore bringing Pony.ai’s robotaxis to inDrive’s platform — a reflection of the growing interest in self-driving technology beyond the U.S. and China.
Testing will begin in Kazakhstan’s capital, Astana, in the first half of 2027, inDrive CTO Yuri Misnik told TechCrunch. The tests will initially involve a safety operator, with fully driverless rides as the eventual goal.
Under the proposed plan, Pony.ai would provide its Gen-7 robotaxis, which inDrive would offer through its ride-hailing app and operate in Kazakhstan. Nvidia, on the other hand, would supply the AI technology, including its Hyperion platform and Halos safety system.
The move comes as ride-hailing companies expand their push into robotaxis. Earlier this month, Uber announced plans to test Pony.ai’s robotaxis in London, where it has also started offering supervised autonomous rides with British startup Wayve, an investor-backed partner. Uber is also working with multiple robotaxi companies in other markets, including the Middle East.
inDrive, which has built its business around affordable rides, is looking to bring a similar focus to autonomous ride-hailing as it explores a market where Uber and other rivals are already making moves.
“Our approach is capital-light by design,” said Misnik. “We work with a range of partners in different markets, combining their expertise with ours to deliver a better customer experience.”
Nvidia says its Hyperion platform could lower the cost of developing robotaxis by giving companies a ready-made foundation of sensors and computing technology, rather than requiring them to build and integrate everything themselves. The company also offers its Alpamayo model and tools to generate synthetic data and test autonomous driving systems across different driving scenarios.
“Those savings are particularly relevant in emerging markets, where ride-hailing is already relatively affordable and autonomous services need to compete on cost,” Ali Kani, Nvidia’s vice president of automotive, told TechCrunch.
The announcement coincides with Nvidia CEO Jensen Huang’s first visit to Kazakhstan on Friday.
The Kazakhstan proposal would also add to Pony.ai’s ongoing push beyond China. The company aims to have more than 3,500 robotaxis operating in over 20 cities worldwide by the end of 2026, up from a fleet of 1,975 vehicles at the end of June.
Last month, Kazakhstan announced plans to launch autonomous taxi services in 2027, with initial trials planned in Astana and two other cities. It has also introduced rules for autonomous vehicles to be tested on certain public roads.
Astana’s harsh winters could make it a useful testing ground for robotaxis. The city, with a population of around 1.7 million, faces months of snow and ice, posing challenges for autonomous driving systems.
“Launching here will provide an important opportunity to evaluate autonomous driving technology in challenging winter conditions,” inDrive founder and CEO Arsen Tomsky said. “Success in Astana could offer valuable insights for expanding autonomous mobility to other locations facing similar challenges.”
Kazakhstan is not the only market where inDrive is exploring robotaxis. In December, the company signed a separate agreement with Saudi Arabia’s AI Driver to explore deploying autonomous vehicles powered by Chinese self-driving firm WeRide, starting with Riyadh. The companies had targeted a pilot in the first half of 2026, though it remains unclear whether testing has begun.
“We are also looking at a number of other markets for future deployments,” said Misnik. “One of the main requisites for successful launch in our view is a favorable and collaborative regulatory environment to facilitate safe and sustainable testing on the roads.”
inDrive operates in more than 1,200 cities across 47 countries. The company has also expanded beyond ride-hailing into delivery, intercity transportation, and financial services.
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Jagmeet covers startups, tech policy-related updates, and all other major tech-centric developments from India for TechCrunch. He previously worked as a principal correspondent at NDTV.
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SummaryNvidia Corporation remains a Strong Buy, with a $447 price target (~101% upside), driven by its transformation into the AI economy’s central infrastructure and governance provider.NVDA’s strategic moves—Hugging Face acquisition, BlueField-4 agentic governance, NVLink Fusion, and DSX energy orchestration—solidify its moat and recurring-token-yield economics.By financializing AI GPUs and forming insurance-backed asset classes, NVDA mitigates CapEx risk and secures liquidity from neocloud investments and a $150B buyback.Key NVDA forward risks include insurance market shifts, architectural disruption from competitors, and potential geopolitical fragmentation of AI tech standards. imaginima/E+ via Getty Images
In my last article, I marked a Strong Buy rating on Nvidia Corporation (NVDA) stock. At that time, my point was that Nvidia’s business is shifting into being an "almost" financial AI utility provider. On a forward basis, through
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Nvidia (NVDA -4.61%) isn't the first stock that comes to mind when discussing quantum computing. That's probably because it isn't building a quantum computer or quantum computing chip, nor does it plan to. Given that, you might wonder why it could even be considered a quantum computing investment.
The answer to that is that there's more to quantum computing than the actual computing units, and Nvidia is leaning heavily into the support side, which makes it a pretty good offshoot investment. Combine that with the massive AI build-out tailwind ongoing right now, and you have a recipe for a stock that could have several years' worth of strong growth ahead.
Image source: Getty Images.
Nvidia predicts a hybrid quantum computing environment
Quantum computers perform computations in ways that are fundamentally different from traditional machines. While they have the potential to be incredibly useful in some unusual situations where the math gets so complex that it would take a standard supercomputer years to deliver an answer, quantum computers will never be appropriate tools for most of the tasks we use computers for today. Furthermore, Nvidia and others are betting that quantum computers won't be able to function in isolation; they'll need close support from traditional accelerated computing hardware, such as its GPUs.
To ensure that server clusters built around its processor architectures are used in the hybrid computing approach, Nvidia has launched several supporting products. First, it developed the NVQLink, a high-speed connector that allows quantum computers to interface with classical servers powered by Nvidia's GPUs.
It has also adapted its industry-leading CUDA software platform to include quantum computing functions, which differ significantly from traditional computing functions. This version of the software is appropriately named CUDA-Q, and it's another reason why quantum computing firms may choose Nvidia's hardware to support their quantum computers. Nvidia also developed an AI model called Ising that helps with quantum computing error correction.
NVDA Nvidia$211.74-$10.24 (-4.61%)
NASDAQ · As of 3:55 PM ET 10/22/26
All these new technologies ensure that Nvidia's platform will be used alongside quantum computing hardware when that technology eventually reaches commercial viability. If quantum computing takes longer than expected to get to that point (or even if it never reaches mainstream status), Nvidia's position at the top of the accelerated computing field will remain, and it will continue to make money from the massive AI build-out.
Nvidia expects huge growth on the AI front through 2030, projecting that global annual data center capital expenditures will reach $3 trillion to $4 trillion that year. For reference, Nvidia believes the big five AI hyperscalers will spend nearly $800 billion on data centers in 2026 and $1.3 trillion in 2027.
So, whether it's traditional computing for AI or looking to the future of quantum computing, Nvidia has clearly positioned itself as a major partner for whichever new technologies need significant computing power. As a result, I think it's a top investment pick, even in a quantum computing-focused basket.
Nvidia NVDA shares fell more than 4% on Thursday as chip stocks came under renewed pressure, with investors growing increasingly concerned about the financing required to sustain the artificial intelligence boom.
The selloff extended across the technology sector, with the Nasdaq Composite down 2.5%, the S&P 500 falling 1.4% and the Dow Jones Industrial Average losing around 0.2% at around 1:10 PM EST.
The Philadelphia Semiconductor Index tumbled over 6%, reflecting mounting unease over the costs, capacity constraints and potential returns associated with AI investments.
The weakness came as a sharp rise in oil prices added another source of uncertainty. Brent crude climbed nearly 3% to above $112 a barrel, while West Texas Intermediate advanced around 2% to more than $99.
Fresh Houthi attacks in Saudi Arabia and uncertainty surrounding the possibility of renewed US and Israeli strikes against Iran heightened concerns about energy supplies and inflation, further putting equity markets under pressure.
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A sharp selloff makes NVDA a compelling momentum buy for AI chip demand.
51% of retail investor accounts lose money when trading CFDs with this provider.
Despite the recent weakness, Nvidia CEO Jensen Huang struck an optimistic tone on demand for neocloud providers, which supply cloud infrastructure to AI companies.
He argued that the industry's challenge is increasingly about securing the financing needed to expand capacity rather than finding customers.
“If you look at the fundamentals, the demand for the neoclouds is off the charts,” Nvidia CEO Jensen Huang told CNBC, referring to companies such as Coreweave and Nscale, which offer cloud-based storage to AI companies.
“What is missing in the middle is the working capital to fuel that growth… because there’s just so much demand across so many sectors of AI, there’s a scarcity of capital."
“The demand for capital is much greater than the availability of capital. That’s going to get solved.”
Huang's comments come as investors scrutinise the substantial funding required to expand AI computing infrastructure.
While demand for chips and cloud capacity remains strong, markets are increasingly focused on whether companies can finance their expansion without taking on excessive risks or relying on circular investment arrangements.
Questions about interconnected investments across the AI supply chain have added to the nervousness. According to Korean media, Nvidia and Tesla are investing a combined 3.7 trillion won, or approximately $2.8 billion, in Samsung Electro-Mechanics to establish dedicated production facilities for advanced flip-chip ball grid array (FC-BGA) semiconductor substrates used in AI chips and data-center networks.
The arrangements have revived concerns about circular financing, in which companies provide funding to customers or partners that subsequently spend the money on their products.
Investors fear such practices could inflate apparent demand, encourage excess manufacturing capacity and weaken the underlying economics of the AI investment cycle.
Lam Research's latest results offered evidence of continued demand, but also highlighted limits on how quickly the supply chain can respond.
The semiconductor equipment maker reported record quarterly revenue of $8.22 billion and adjusted earnings of $2.20 per share, beating expectations.
However, CFO Doug Bettinger said its quarterly revenue guidance figure of $8.6 billion "would have been a bit higher if not for some near-term supply chain constraints."
For Nvidia, the broader market reaction underlines the tension facing the AI industry: demand for computing capacity remains substantial, but financing costs, supply bottlenecks and questions about investment returns are becoming harder for investors to ignore.
Earnings season has kicked off, but the world's most valuable company by market cap doesn't report until next month. Nvidia (NVDA -4.04%) operates on a different fiscal calendar, with its fiscal third quarter ending next week. It doesn't mean investors shouldn't start preparing now for the initial market reaction.
When the global leader in AI infrastructure solutions offers up fresh financials in mid-November, the numbers will be big. The stock's response -- at least, based on recent market reactions to Nvidia results -- might surprise you.
Image source: Getty Images.
Berate expectations Analysts are holding out for another quarter of robust growth for Nvidia. They see revenue surging 91% to hit a record $109 billion. This is in line with the $108 billion that Nvidia itself offered up as guidance two months ago. The same Wall Street pros also see earnings rising roughly 90%, to $2.47 per share.
You would think a 90% increase on both ends of the income statement is a pretty high bar, but Nvidia is often toying with the market. It has consistently landed 3% to 6% above analyst profit targets over the past year. With its recent string of beat-and-raise performances, you would expect confetti launchers to go off whenever the wearer of the market cap crown steps up with new financial results. The last five quarters could shock you.
Chipping away at the market leader There is a lot to unpack here. Let's start by noting that the stock initially moved lower following four of the last five earnings reports. The good news is that the stock had ultimately risen by the time Nvidia reported again three months later.
Another piece of comforting news is that the outlier here -- Nvidia shares rising after its fiscal second quarter this past summer -- was the one time that the stock was lower than it was after the previous report. The conclusion, given the limited sample size of five financial updates, is that Nvidia more than makes up for the initial post-earnings decline. The one time that didn't happen, the initial post-earnings reaction was positive.
NVDA Nvidia$213.00-$8.97 (-4.04%)
NASDAQ · As of 1:24 PM ET 10/22/26
A November to remember This brings us to next month's critical update. Nvidia stock is currently near its level from its last report on Aug. 26. It's not trading materially higher, suggesting the stock may sell even on an upbeat report. It's also not trading substantially lower, as it did when it bucked the trend to rise last time out.
One comforting thought for the bulls is that the stock has undershot the improvement in Nvidia's fundamentals over the past year. Revenue growth has accelerated over the past several quarters, and net income growth has been explosive. The stock's 20% ascent over the past year is just a sliver of the growth it has delivered.
Nvidia shares are currently trading for less than 14 times next year's adjusted earnings target. It's a great price for a great company. The ceiling remains high. Naturally, the floor can also be substantially lower if revenue growth slows and margins contract, but that's not likely to be the case in next month's report. If a dip comes -- as it has four of the last five times -- there are still good reasons to remain optimistic.
Greenland Capital Management LP lowered its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 33.1% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 12,672 shares of the computer hardware maker’s stock after selling 6,270 shares during the quarter. Greenland Capital Management LP’s holdings in NVIDIA were worth $2,536,000 at the end of the most recent quarter.
A number of other hedge funds have also recently bought and sold shares of NVDA. Longview Financial Advisors Inc. bought a new position in shares of NVIDIA during the 1st quarter valued at about $27,000. Montgomery Financial Services LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth approximately $28,000. Langley Wealth Management LLC acquired a new stake in NVIDIA during the second quarter valued at approximately $34,000. Phillip James Consulting Co. bought a new stake in NVIDIA during the first quarter worth approximately $40,000. Finally, Bard Associates Inc. boosted its holdings in NVIDIA by 8,866.7% during the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after buying an additional 266 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: SpaceX demand supported the broader AI trade. Elon Musk said SpaceX is adding approximately 200,000 chips per month, strengthening investor confidence that spending on NVIDIA’s systems remains robust. Nvidia Stock Rises as SpaceX Adds Chips Positive Sentiment: New DSX platforms could accelerate revenue deployment. NVIDIA introduced the factory-built DSX POD, which packages Vera Rubin computing, networking, cabling, power and liquid cooling in modular units. The design could reduce deployment time from roughly six months to as little as 14 days, allowing data-center operators to bring AI capacity online and generate revenue sooner. Nvidia Announces Vera Rubin Racks Positive Sentiment: NVIDIA is expanding beyond GPUs into complete AI factories. Its DSX ecosystem targets power, cooling and infrastructure constraints, with claims of up to 30% lower power use and near-zero cooling-water consumption in some designs. Partners including Dell, HPE, Schneider Electric, Vertiv and major cloud providers are supporting the platform. European Ecosystem Builds AI Factories With NVIDIA DSX Positive Sentiment: Multiple partnerships broaden NVIDIA’s long-term opportunity. GTC announcements covered robotics, autonomous vehicles, telecom AI-RAN, enterprise AI-agent security, healthcare and quantum computing. Separately, Agile Robots plans to produce up to 2,000 humanoid robots using NVIDIA technology, highlighting potential growth beyond data centers. Germany’s Agile Robots Partnership Neutral Sentiment: Investors remain focused on execution and competition. Analysts see continued AI spending, but Google and Amazon are developing alternatives to NVIDIA’s software and accelerators. NVIDIA’s high valuation, reliance on partners and reports of sustained insider selling could also limit upside if growth expectations or deployment timelines disappoint. Wall Street Analyst Weigh In Several research firms have issued reports on NVDA. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a research report on Monday, September 21st. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. Needham & Company LLC reiterated a “buy” rating on shares of NVIDIA in a research report on Wednesday. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. Finally, Yorkville Ives initiated coverage on NVIDIA in a report on Tuesday, October 6th. They issued an “outperform” rating and a $300.00 target price on the stock. Five 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. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $321.47. Get Our Latest Stock Report on NVDA
NVIDIA Stock Performance NVIDIA stock opened at $221.88 on Thursday. The firm’s 50 day simple moving average is $223.13 and its 200-day simple moving average is $212.32. The company has a market cap of $5.35 trillion, a P/E ratio of 28.05, a price-to-earnings-growth ratio of 1.66 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. 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%. The firm’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.05 earnings per share. As a group, equities research analysts predict that NVIDIA Corporation will post 9.30 EPS for the current year.
NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is presently 12.64%.
NVIDIA announced that its Board of Directors has initiated a stock repurchase program on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share repurchase programs are often a sign that the company’s board believes its stock is undervalued.
Insider Buying and Selling at NVIDIA In other news, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction 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 completion of the sale, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last three months. 3.94% of the stock is currently owned by company insiders.
NVIDIA Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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Henrickson Nauta Wealth Advisors Inc. boosted its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 40.8% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 12,357 shares of the computer hardware maker’s stock after buying an additional 3,583 shares during the quarter. NVIDIA accounts for about 0.6% of Henrickson Nauta Wealth Advisors Inc.’s holdings, making the stock its 18th biggest holding. Henrickson Nauta Wealth Advisors Inc.’s holdings in NVIDIA were worth $2,472,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other institutional investors have also made changes to their positions in NVDA. Bank of America Corp DE increased its holdings in NVIDIA by 2.2% in the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after purchasing an additional 4,165,875 shares during the last quarter. Amundi raised its position in NVIDIA by 10.4% in 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. Dimensional Fund Advisors LP raised its position in NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after purchasing an additional 555,221 shares during the period. Deutsche Bank AG lifted its stake in NVIDIA by 2.3% during the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after purchasing an additional 2,045,101 shares in the last quarter. Finally, Jupiter Topco LLC acquired a new position in NVIDIA during the second quarter worth $16,156,076,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This 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 S. Teter sold 30,460 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the sale, 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by company insiders.
More NVIDIA News Here are the key news stories impacting NVIDIA this week: Positive Sentiment: SpaceX demand supported the broader AI trade. Elon Musk said SpaceX is adding approximately 200,000 chips per month, strengthening investor confidence that spending on NVIDIA’s systems remains robust. Nvidia Stock Rises as SpaceX Adds Chips Positive Sentiment: New DSX platforms could accelerate revenue deployment. NVIDIA introduced the factory-built DSX POD, which packages Vera Rubin computing, networking, cabling, power and liquid cooling in modular units. The design could reduce deployment time from roughly six months to as little as 14 days, allowing data-center operators to bring AI capacity online and generate revenue sooner. Nvidia Announces Vera Rubin Racks Positive Sentiment: NVIDIA is expanding beyond GPUs into complete AI factories. Its DSX ecosystem targets power, cooling and infrastructure constraints, with claims of up to 30% lower power use and near-zero cooling-water consumption in some designs. Partners including Dell, HPE, Schneider Electric, Vertiv and major cloud providers are supporting the platform. European Ecosystem Builds AI Factories With NVIDIA DSX Positive Sentiment: Multiple partnerships broaden NVIDIA’s long-term opportunity. GTC announcements covered robotics, autonomous vehicles, telecom AI-RAN, enterprise AI-agent security, healthcare and quantum computing. Separately, Agile Robots plans to produce up to 2,000 humanoid robots using NVIDIA technology, highlighting potential growth beyond data centers. Germany’s Agile Robots Partnership Neutral Sentiment: Investors remain focused on execution and competition. Analysts see continued AI spending, but Google and Amazon are developing alternatives to NVIDIA’s software and accelerators. NVIDIA’s high valuation, reliance on partners and reports of sustained insider selling could also limit upside if growth expectations or deployment timelines disappoint. NVIDIA Stock Performance Shares of NVDA stock opened at $221.88 on Thursday. The firm has a 50 day moving average of $223.13 and a two-hundred day moving average of $212.32. The stock has a market capitalization of $5.35 trillion, a PE ratio of 28.05, a P/E/G ratio of 1.66 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. 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 posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates 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 company’s revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.05 earnings per share. On average, research analysts predict that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.
NVIDIA declared that its board has approved a stock repurchase program on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
NVIDIA Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
Analyst Upgrades and Downgrades NVDA has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price target on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a research report on Thursday, August 27th. Rosenblatt Securities reiterated a “buy” rating and issued a $390.00 price objective on shares of NVIDIA in a report on Tuesday, September 29th. Raymond James Financial set a $515.00 target price on NVIDIA and gave the stock a “strong-buy” rating in a research note on Thursday, August 27th. Evercore set a $465.00 target price on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Finally, UBS Group restated a “buy” rating on shares of NVIDIA in a report on Friday, October 9th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, NVIDIA has a consensus rating of “Buy” and an average target price of $321.47.
Check Out Our Latest Research Report on NVIDIA
About NVIDIA (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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Endeavor Private Wealth Inc. boosted its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 42.8% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 25,876 shares of the computer hardware maker’s stock after purchasing an additional 7,757 shares during the period. NVIDIA makes up approximately 1.3% of Endeavor Private Wealth Inc.’s holdings, making the stock its 17th largest position. Endeavor Private Wealth Inc.’s holdings in NVIDIA were worth $5,178,000 at the end of the most recent reporting period.
Other hedge funds have also added to or reduced their stakes in the company. Bank of America Corp DE increased its position in NVIDIA by 2.2% during the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after acquiring an additional 4,165,875 shares during the last quarter. Amundi boosted its position in NVIDIA by 10.4% in the first 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. Deutsche Bank AG boosted its position in NVIDIA by 2.3% in the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after purchasing an additional 2,045,101 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after purchasing an additional 555,221 shares during the period. Finally, Jupiter Topco LLC bought a new stake in shares of NVIDIA during the 2nd quarter valued at about $16,156,076,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: SpaceX demand supported the broader AI trade. Elon Musk said SpaceX is adding approximately 200,000 chips per month, strengthening investor confidence that spending on NVIDIA’s systems remains robust. Nvidia Stock Rises as SpaceX Adds Chips Positive Sentiment: New DSX platforms could accelerate revenue deployment. NVIDIA introduced the factory-built DSX POD, which packages Vera Rubin computing, networking, cabling, power and liquid cooling in modular units. The design could reduce deployment time from roughly six months to as little as 14 days, allowing data-center operators to bring AI capacity online and generate revenue sooner. Nvidia Announces Vera Rubin Racks Positive Sentiment: NVIDIA is expanding beyond GPUs into complete AI factories. Its DSX ecosystem targets power, cooling and infrastructure constraints, with claims of up to 30% lower power use and near-zero cooling-water consumption in some designs. Partners including Dell, HPE, Schneider Electric, Vertiv and major cloud providers are supporting the platform. European Ecosystem Builds AI Factories With NVIDIA DSX Positive Sentiment: Multiple partnerships broaden NVIDIA’s long-term opportunity. GTC announcements covered robotics, autonomous vehicles, telecom AI-RAN, enterprise AI-agent security, healthcare and quantum computing. Separately, Agile Robots plans to produce up to 2,000 humanoid robots using NVIDIA technology, highlighting potential growth beyond data centers. Germany’s Agile Robots Partnership Neutral Sentiment: Investors remain focused on execution and competition. Analysts see continued AI spending, but Google and Amazon are developing alternatives to NVIDIA’s software and accelerators. NVIDIA’s high valuation, reliance on partners and reports of sustained insider selling could also limit upside if growth expectations or deployment timelines disappoint. Insider Buying and Selling at NVIDIA In other news, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction 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 completion of the sale, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer owned 765,103 shares in the company, valued at $167,595,812.15. The trade was 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. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. 3.94% of the stock is currently owned by corporate insiders. Analyst Ratings Changes Several equities research analysts have recently commented on NVDA shares. Wall Street Zen raised shares of NVIDIA from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 10th. Evercore set a $465.00 price objective on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Weiss Ratings upgraded shares of NVIDIA from a “buy (b)” rating to a “buy (b+)” rating in a research report on Friday, October 16th. Citigroup reaffirmed a “buy” rating and set a $315.00 target price (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Finally, TD Cowen reiterated a “buy” rating on shares of NVIDIA in a research report on Tuesday, August 18th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $321.47.
Get Our Latest Stock Report on NVDA
NVIDIA Stock Up 2.5% NASDAQ NVDA opened at $221.88 on Thursday. The stock’s 50-day moving average price is $223.13 and its 200-day moving average price is $212.32. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a market capitalization of $5.35 trillion, a P/E ratio of 28.05, a price-to-earnings-growth ratio of 1.66 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations 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 in the previous year, the firm earned $1.05 EPS. On average, equities research analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.
NVIDIA announced that its board has approved a share buyback plan 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. Share buyback plans are typically a sign that the company’s board believes its shares are undervalued.
NVIDIA Announces Dividend The company also recently announced 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. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.
NVIDIA Company Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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Nvidia CEO Jensen Huang told CNBC Thursday that a surplus of memory supply is unlikely by 2029, despite a sell-off in memory stocks over the past week amid concerns about oversupply and weakening demand.
"One of the things that's really great about memory is that you can always use more of it," Huang told CNBC's Arjun Kharpal in a wide-ranging interview on the sidelines of the company's GTC Berlin conference. He added that HBM, a type of random access memory, or RAM, will be used for years to come.
"We're the first company in the world to put LPDDR memory — what goes into your cell phones — into the world's data centers, and it's enabled us to deliver performance that's twice as energy efficient as anything in the world today, and so we're going to continue to use abundant amounts of them as well," he added.
Memory stocks have taken a battering in the past week after an opinion column published in a prominent South Korean publication on Oct. 15 urged the country's government to brace for a deceleration in the AI boom.
The column cited two experts who said they expect to see a "flood of new supply," which will turn the memory market "into a red ocean" in 2029, per CNBC's translation. "The supercycle could be over, and the industry could enter a downturn," by 2029, they wrote.
watch now
Memory is a core component of Nvidia's chips, and a glut of supply could push prices lower and hit profit margins for the companies that make the product, such as SK Hynix, Samsung, and Micron.
SpaceX and Tesla CEO Elon Musk responded to the article at the time, saying that China "will be making a LOT of RAM in 2028."
The memory selloff was also driven by China's ChangXin Memory Technologies, or CXMT, which announced new design architecture that could lead to greater efficiencies. The announcement added to investor concern that CXMT could take market share from rivals SK Hynix, Samsung, and Micron.
"We're open-minded," Huang said Thursday when asked about whether he plans to partner with CXMT and use its memory product. "We work with Chinese companies; just about the whole world works with Chinese companies in the supply chain somewhere."
"China is incredible at the fundamental infrastructure technology, and no country collectively is better at manufacturing than China, and so we have to take their capabilities very seriously," he added.
U.S. regulation 'accelerated' China's chip advancementsHuang also told CNBC that China's advancements in the semiconductor industry are due to mounting U.S. regulations, which pushed the country to speed up its own chip technology and manufacturing.
The U.S. currently restricts exports of the country's most advanced semiconductors to China, including top-end Nvidia chips. However, some Chinese firms are making use of a loophole to access the product's compute power through data centers in Southeast Asia. Experts say that this has been key to Chinese AI models becoming more capable.
China "definitely accelerated because of all the regulations," he said.
"We've definitely accelerated China's initiatives, its nationalization of semiconductor manufacturing capabilities, and all of the industrial support that has been put into that sector, and so there's no question we've accelerated that," he added.
Huang emphasized that American tech firms are "mighty" and are prepared to take on competition "from anybody."
New York, NY, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Alpha Compute Corp. (Nasdaq: ALP) (“Alpha Compute” or the “Company”), a pioneering technology leader in AI GPU-as-a-Service (GPUaaS) and AI Confidential Compute, today announced that it has joined the Confidential Computing Consortium (CCC) as a Premier member, effective Oct. 1, 2026, taking a seat at the table where the rules of private AI are being written. Chief Executive Officer Brittany Kaiser will represent the Company on the CCC Governing Board.
The CCC is a Linux Foundation project that develops the open standards and open-source software behind confidential computing, the technology that keeps data encrypted and verifiably private even while it is being processed. Its more than 40 member organizations include the companies that build the chips, clouds and software the world’s AI runs on. Premier membership is the consortium’s highest tier, and Alpha Compute now holds a voting seat on the Governing Board, which sets the consortium’s strategy, policy and governance, and a voting seat on the Technical Advisory Council, which guides its technical direction and open-source projects. The Company has also joined the CCC Marketing Working Group to accelerate industry adoption, and has joined the Linux Foundation as a Silver member.
The move cements Alpha Compute’s position at the center of a shift now underway in enterprise AI: from trusting providers to verifying them. As AI moves into healthcare records, financial data, government workloads and proprietary models, organizations are demanding cryptographic proof, not promises, that their data and intellectual property remain theirs alone. Alpha Compute builds its GPU infrastructure for exactly that world, delivering Sovereign Intelligence: AI that answers only to its owner.
That vision takes the stage this week at NVIDIA GTC Berlin. On Thursday, Oct. 22, 2026, at 5:30 PM CEST, Alpha Compute’s Lead AI Researcher, Allen Roush, will join leaders from NVIDIA, ElevenLabs and the Technology Innovation Institute on a panel moderated by Fortanix at the Confidential AI Summit at GTC Berlin, an invitation-only evening hosted by Fortanix, a fellow CCC member, and NVIDIA ecosystem partners at Café Anhalt. The session, “The Chain of Trust for Confidential AI,” will explore how confidential computing lets enterprises deploy foundation models on sensitive data, protect it during inference and scale secure workloads across hybrid and sovereign environments.
“The next era of AI will be decided by a single question: who controls the data,” said Brittany Kaiser, Chief Executive Officer of Alpha Compute. “Organizations that handle sensitive information need proof that it stays private while our GPUs process it, and the Confidential Computing Consortium is where the open standards behind that proof are built. As a Premier member with a vote on the board and the technical council, Alpha Compute is helping shape those standards so that privacy and ownership are engineered into AI from the start. Sharing the stage with Fortanix, NVIDIA and ElevenLabs in Berlin is where that future gets built.”
“Fortanix and Alpha Compute are partnering to bring together robust data protection with Confidential Computing, and best in class infrastructure capabilities to help enterprises unlock the full potential of Confidential AI,” said Anuj Jaiswal, Chief Product Officer of Fortanix. “We are excited to have Alpha Compute join the Fortanix Confidential AI Summit, in Berlin, to discuss the advancing of a trusted foundation for the next generation of AI innovation.”
About Alpha Compute Corp.
Alpha Compute Corp. (Nasdaq: ALP) is a vertically integrated technology company delivering High Performance Computing (HPC) and AI Confidential Compute. Alpha Compute’s mission is to empower clients, subsidiaries, and partners across critical sectors, including finance, defense, intelligence, and media with the essential framework required for secure, confidential computing environments. Alpha Compute operates globally with offices in New York, Los Angeles, Miami, Amsterdam, and Toronto. Alpha Compute is a proud founding partner of the Right2Compute Coalition.
For more information, please visit www.alphacompute.ai or www.right2compute.com.
SALEM, Ore., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Agility Robotics, a leading humanoid robotics and physical AI company, today announced that Digit® 5 will standardize on NVIDIA IGX Thor for its onboard compute, expanding the companies’ collaboration as Agility prepares its next-generation humanoid robot for broader commercial deployment.
The new architecture will unify Digit 5’s onboard compute by standardizing on NVIDIA IGX Thor modules. The transition establishes NVIDIA as the exclusive provider of onboard compute for the general availability version of Digit 5.
“Bringing humanoid robots to commercial scale requires AI computing and safety to be engineered together,” said Deepu Talla, Vice President of Robotics and Edge AI at NVIDIA. “By standardizing Digit 5’s onboard compute on NVIDIA IGX Thor and incorporating NVIDIA Halos into its safety system, Agility is bringing these capabilities together as it prepares for broader deployment in factories and warehouses.”
Advancing Compute and Safety for Industrial Deployment
The compute transition builds on Agility’s previously announced collaboration with NVIDIA Halos safety platform for physical AI deployments, addressing safety at each layer of Agility’s development stack.
As part of that collaboration, Agility is integrating NVIDIA IGX Thor and additional NVIDIA Halos models into its proprietary safe human detection system for Digit. These integrations are intended to expand Digit’s current perception capabilities, support connections to a broader ecosystem, and facilitate Agility’s ongoing certification and deployment efforts. Agility was the first company to announce with NVIDIA that it will incorporate elements of NVIDIA Halos into its proprietary safety system.
Agility will also participate in the NVIDIA Halos AI Systems Inspection Lab to support the evaluation of Digit’s safety-related software, AI components and cybersecurity protections ahead of final third-party certification.
“For humanoid robots to deliver lasting value, they need to perform useful work reliably and safely in our customers’ operations,” said Pras Velagapudi, Chief Technology Officer of Agility Robotics. “As we prepare Digit 5 for general availability, we are unifying its compute architecture and building on our safety collaboration with NVIDIA. Moving to NVIDIA Thor modules gives us a common foundation as we advance Digit’s capabilities and prepare for broad commercial deployment.”
Early access to Digit 5 is expected to begin in the first half of 2027, with increasing availability over the following six to nine months for manufacturing, warehouse and distribution operators.
Agility Robotics and Churchill Capital Corp XI
Agility is preparing to become a public company through its previously announced business combination with Churchill Capital Corp XI (Nasdaq: CCXI). The business combination is expected to close in the fourth quarter of 2026, after which the combined company will operate as Agility Robotics and is expected to trade on Nasdaq under the ticker symbol “AGLT.”
About Agility Robotics
Headquartered in Salem, Oregon, with offices in Pittsburgh, Pennsylvania and Fremont, California, Agility Robotics' mission is to build robot partners that augment the human workforce. Agility's groundbreaking general-purpose humanoid robot, Digit, is the first multi-purpose, human-centric robot that is Made for Work® and commercially deployed today. With more than 65,000 hours of real-world operation combined with industry-leading safety standards, we're pioneering a new era of automation that enhances human potential. To learn more, visit agilityrobotics.com.
Agility, the Agility logo, Digit, Agility Arc, RoboFab, and Made for Work are trademarks of Agility Robotics, Inc. All rights reserved. Third-party trademarks are the property of their respective owners.
About Churchill Capital Corp XI
Churchill Capital Corp XI (“Churchill XI”) XI is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. It may pursue an initial business combination target in any business or industry.
Additional Information About the Proposed Transaction and Where to Find It
The proposed transaction will be submitted to shareholders of Churchill XI for their consideration. Churchill XI and Agility Robotics have jointly filed a registration statement on Form S-4 (the “Registration Statement”) with the Securities and Exchange Commission (the "SEC”), which was declared effective by the SEC on October 13, 2026, and which includes a definitive proxy statement/prospectus. The definitive proxy statement/prospectus and other relevant documents have been distributed to Company stockholders and Churchill XI shareholders as of September 14, 2026, the record date established for voting on the proposed transaction, in connection with Churchill XI’s solicitation of proxies for the vote by Churchill XI’s shareholders in connection with the proposed transaction and other matters described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to Company stockholders in connection with the completion of the proposed transaction. Before making any voting or investment decision, Churchill XI and Agility stockholders and other interested persons are advised to read the definitive proxy statement/prospectus, as well as other documents filed with the SEC by Churchill XI in connection with the proposed transaction, as these documents contain important information about Churchill XI, the Company and the proposed transaction. Shareholders may obtain a copy of the definitive proxy statement/prospectus as well as other documents filed by Churchill XI with the SEC, without charge, at the SEC’s website located at www.sec.gov or by directing a written request to Churchill Capital Corp XI, 640 Fifth Avenue, 14th Floor, New York, NY 10019.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the federal securities laws regarding Agility and Churchill XI. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict," "should" and "would," or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of any of these words or similar expressions does not mean that a statement is not forward-looking. These forward-looking statements are based on Agility's and Churchill XI's current expectations and projections. These statements include statements relating to, without limitation: Agility's plans to standardize Digit 5's onboard compute architecture on NVIDIA IGX Thor modules, including the anticipated integration, functionality, performance and benefits of such technology; Agility's ongoing and expanded collaboration with NVIDIA, including the integration of NVIDIA IGX Thor and elements of the NVIDIA Halos safety platform into Digit's proprietary safety systems; the expected capabilities and benefits of these integrations, including enhancements to perception capabilities, safety, reliability and operational performance; Agility's anticipated participation in the NVIDIA Halos AI Systems Inspection Lab and the expected evaluation, validation and certification of Digit's safety-related software, AI components and cybersecurity protections; Agility's ability to develop, validate and deploy new Digit skills and capabilities; the anticipated timing of early access to Digit 5 in the first half of 2027 and general availability by the end of 2027; Agility's ability to scale manufacturing, commercial deployments and service infrastructure to support existing and future customers; Agility's preparation to operate as a public company; Agility's ability to consummate the proposed business combination with Churchill XI, the satisfaction or waiver of the closing conditions set forth in the proposed business combination or PIPE subscription agreements; the occurrence of any other event, change or other circumstances that could give rise to the termination of the proposed business combination or PIPE subscription agreements; the expected timing of closing of the proposed transaction; the expected listing of the combined company's securities on Nasdaq under the ticker symbol "AGLT"; and the potential benefits of the proposed transaction and expectations related to its terms and timing.
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of the Company and Churchill XI.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the Company’s, Churchill XI’s or the combined company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that the Company is pursuing an emerging technology, faces significant technical challenges and may not achieve commercialization or market acceptance; the Company’s historical net losses and limited operating history; the Company’s expectations regarding future financial performance, capital requirements and unit economics; the Company’s use and reporting of business and operational metrics; the Company’s competitive landscape; the Company’s dependence on members of its senior management and its ability to attract and retain qualified personnel; the potential need for additional future financing; the Company’s ability to manage growth and expand its operations; potential future acquisitions or investments in companies, products, services or technologies; the Company’s reliance on strategic partners and other third parties; the Company’s ability to maintain, protect and defend its intellectual property rights; risks associated with privacy, data protection or cybersecurity incidents and related regulations; the use, rate of adoption and regulation of artificial intelligence and machine learning; uncertainty or changes with respect to laws and regulations; uncertainty or changes with respect to taxes, trade conditions and the macroeconomic environment; the combined company’s ability to maintain internal control over financial reporting and operate a public company; the risk that the proposed transaction may not be completed in a timely manner or at all, which may adversely affect the price of Churchill XI’s securities; the failure by the parties to satisfy the conditions to consummation of the proposed transaction, including the approval of Churchill XI’s shareholders; the possibility that required regulatory approvals for the proposed transaction are delayed or are not obtained, which could adversely affect the combined company or the expected benefits of the proposed transaction; the risk that shareholders of Churchill XI could elect to have their shares redeemed, leaving the combined company with insufficient cash to execute its business plans; the level of redemptions of Churchill XI’s public shareholders; the ability of the Company to grow and manage growth, maintain relationships with customers and retain its management and key employees; costs related to the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; the outcome of any legal proceedings or government investigations that may be commenced against the Company or Churchill XI; failure to realize the anticipated benefits of the proposed transaction; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of Churchill XI or the combined company to issue equity or equity-linked securities in connection with the proposed transaction or in the future; and other factors described in Churchill XI’s filings with the SEC. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings and potential filings by the Company, Churchill XI or the combined company resulting from the proposed transaction with the SEC, including under the heading “Risk Factors.” If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, these statements reflect the expectations, plans and forecasts of the Company’s and Churchill XI’s management as of the date of this press release; subsequent events and developments may cause their assessments to change. While the Company and Churchill XI may elect to update these forward-looking statements at some point in the future, they specifically disclaim any obligation to do so. Accordingly, undue reliance should not be placed upon these statements.
In addition, statements that “we believe” and similar statements reflect the Company’s and Churchill XI’s beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and the Company’s and Churchill XI’s statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
An investment in Churchill XI is not an investment in any of Churchill XI’s founders’ or sponsors’ past investments, companies or affiliated funds. The historical results of those investments are not indicative of future performance of Churchill XI, which may differ materially from the performance of Churchill XI’s founders’ or sponsors’ past investments.
Participants in the Solicitation
Churchill XI, the Company and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitation of proxies from Churchill XI’s shareholders in connection with the proposed transaction. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of Churchill XI’s shareholders in connection with the proposed transaction are set forth in the definitive proxy statement/prospectus . You can find more information about Churchill XI’s directors and executive officers in Churchill XI’s final prospectus related to its initial public offering filed with the SEC on December 16, 2025. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests are included in the proxy statement/prospectus . Shareholders, potential investors and other interested persons should read the definitive proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from the sources described above.
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of the securities described herein in the United States or any other jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or exemptions therefrom. INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Contacts
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The Federal Reserve raised rates in September for the first time since 2023, in response to stubbornly elevated inflation. But investors don't believe the central bank is finished just yet. With the September CPI report showing 3.7% year-over-year growth in consumer prices, investors are betting on at least one more rate hike before the end of the year.
According to the CME Group's FedWatch tool, which shows the rate moves being priced into futures markets, there's only a 15% chance that the Fed will hike rates again at its October meeting next week. But there's a massive 88% chance priced in that we'll see at least one more rate hike before the end of 2026. And the base expectation, looking further ahead, is for at least three more Fed rate hikes before the end of 2027.
Image source: Getty Images.
AI stocks have been under pressure lately, and although it isn't the only reason why, rising interest rates have a lot to do with it. Let's assume for a minute that the Fed is going to raise rates once more this year. What would it mean for AI stocks?
Why do interest rates matter for AI stocks?At first, it might seem like AI stocks should be one of the least rate-sensitive parts of the market. It's well-known that businesses like real estate investment trusts (REITs) and other high-yield stocks can be quite vulnerable to rising rates, but why AI stocks? There are two main reasons:
First, rising interest rates reduce the present value of future earnings, and fast-growing companies (like many AI stocks) get their value from what they'll earn in the future, not what they're earning now. This is a big reason why the Nasdaq was the worst-performing of the three major stock market indexes in 2022, when the Fed was forced to aggressively raise rates.
Second, the AI build-out is extremely expensive. Many companies are increasingly financing it with debt. When rates rise, so do borrowing costs, and companies that are relying on debt can be forced to pump the brakes on growth.
Which AI companies could take a hit?First, there are plenty of AI companies that should be minimally impacted by another rate hike. Specifically, companies that aren't affected much by either reason discussed in the last section. Think Nvidia (NVDA +2.54%) and Alphabet (GOOGL -1.62%). Both generate massive amounts of cash today, so their valuations aren't as dependent on future earnings, plus they can fund their AI infrastructure needs with minimal borrowing. While a rate hike could certainly be a headwind for near-term stock performance, it isn't a threat to the business performance.
On the other hand, companies that aren't yet highly profitable, or that depend on capital markets to fund their AI build-outs, are far more vulnerable. Think of CoreWeave (CRWV -0.50%), which is borrowing heavily to build its data centers. Investors are already nervous about the ability of several companies to pay for their ambitious growth plans, and a rate hike certainly won't help cool those fears.
The bottom lineOne additional rate hike isn't likely to be a crushing blow, even for stocks in the latter group. The 10-year Treasury yield is already above 5%, so it's fair to say that the market has largely adjusted to a higher-rate world.
What's really worth watching is whether credit markets continue to tighten for AI-related borrowing. Regardless of how high benchmark interest rates go, as the perception of risky debt increases, AI debt could become far more costly. For this reason, I tend to favor AI companies that fund themselves (or at least have the ability to), and I'm far more selective with those that need to borrow.
Nvidia Chief Executive Officer Jensen Huang discusses neoclouds and why they are a good investment. "The demand of their compute is incredible," Huang tells Bloomberg's Tom Mackenzie.
Nvidia CEO Jensen Huang told CNBC Thursday that demand for neocloud firms is "off the charts," but scarce capital is holding back growth.
"If you look at the fundamentals, the demand for the neo clouds is off the charts," Huang told CNBC's Arjun Kharpal on the sidelines of the company's GTC conference in Berlin on Thursday, adding that capabilities are "extraordinary."
"What is missing in the middle is the working capital to fuel that growth… because there's just so much demand across so many sectors of AI, there's a scarcity of capital," Huang said.
"The demand of the capital is much greater than the availability of the capital. That's going to get solved," he added.
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Super Micro Computer (SMCI +9.55%) had a far bigger quarter than it expected. On Tuesday, the server builder said revenue for the first quarter of its fiscal 2027 (the period ended Sept. 30) should fall between $18.5 billion and $19.5 billion. In August, management had called for $14.5 billion to $15.5 billion.
At the midpoint of each range, the company's estimate was around $4 billion over what it expected. Super Micro said the gap was "primarily due to increased demand for AI platforms," and its shares popped about 9% on Wednesday as I write.
For many investors, though, the more important stock here is Nvidia (NVDA +2.54%). Trading near $220 as I write this, the artificial intelligence (AI) chip leader is about 8% under $239.24, its record close, set on Oct. 6.
But does a server maker's surprise quarter make Nvidia stock a buy? I think it adds to a case that was already strong.
Image source: Getty Images.
Super Micro builds on NvidiaSuper Micro builds the servers and full racks that AI data centers run on. Its annual report for fiscal 2026 (the year ended June 30) puts Nvidia's Blackwell and Blackwell Ultra platforms first in its AI lineup.
It also says it expanded rack-scale manufacturing for Vera Rubin, Nvidia's next platform. And last November, Super Micro said its order book had over $13 billion in Blackwell Ultra orders.
Sure, Super Micro also sells systems built on rival chips, and it doesn't break out how much of its revenue runs on Nvidia hardware. Yet Nvidia's Blackwell systems seem to be what Super Micro leads with in AI.
SMCI Super Micro Computer$35.57+$3.10 (+9.55%)
NASDAQ · As of 4:00 PM ET 10/21/26
Showing how fast that business has grown, the midpoint of Super Micro's new range (around $19 billion) is almost four times the $5.0 billion in revenue it posted in the year-ago quarter. It's also up around 71% from the $11.1 billion it reported in fiscal Q4 -- a quarter when sales almost doubled year over year.
The company now expects a gross margin (gross profit as a share of revenue) of 12% to 12.5%, over its 10.4% to 10.8% outlook and up from 9.3% the year before. It credited customer and product mix.
Keep in mind: these are preliminary, unaudited numbers. Super Micro will release its full results on Nov. 3.
What does it say about Nvidia's quarter?Nvidia's fiscal third quarter started July 27, so August and September fall in both companies' quarters.
For that period, Nvidia expects revenue of $108.0 billion, plus or minus 2%. Super Micro's figures suggest that, through September, demand for AI systems was far ahead of what one of Nvidia's big system builders forecast in August.
Nvidia also has a recent pattern of beating its own outlook, and by a growing amount. For fiscal Q1 (the three months ending April 26), it guided for $78.0 billion and posted $81.6 billion. For fiscal Q2, it guided for $91.0 billion and pulled in $96.2 billion. In other words, the gap between its outlook midpoint and its actual revenue rose from around $3.6 billion to about $5.2 billion.
True, one server maker's quarter can't settle Nvidia's results. Nvidia sells to many builders and cloud providers. And Super Micro's 10-K said limited GPU availability changed the timing of some of its deliveries in fiscal 2026, so part of this jump may be delayed shipments catching up.
Still, I'd say it makes Nvidia's $108 billion forecast look easier to hit.
The stock isn't priced for this growthAfter all, Nvidia's own results already show the demand. Data center revenue, which includes its AI chips and systems, climbed 117% year over year to $89.0 billion in fiscal Q2, accelerating from 92% growth in fiscal Q1. And on Wednesday, when Nvidia announced plans with a group of suppliers to boost manufacturing capacity, CEO Jensen Huang said, "Demand is extraordinary. Capacity is the constraint."
But the stock, around $220, costs about 14 times the earnings analysts, on average, expect Nvidia to report in fiscal 2028 (the 12 months ending January 2028). For a company whose sales just more than doubled, that price-to-earnings ratio suggests investors expect its growth to fade fast.
NVDA Nvidia$221.97+$5.50 (+2.54%)
NASDAQ · As of 4:00 PM ET 10/21/26
That may happen if the largest AI spenders pull back, and Nvidia's stock might fall quickly with them.
So, does Super Micro's quarter make Nvidia stock a buy? A server maker's beat isn't a reason to own any stock by itself. But it lines up with what Nvidia's own numbers already show.
I think Nvidia stock is worth buying at about $220. Super Micro's quarter just gives me a bit more confidence in that view.
