News about Nvidia

Nasdaq futures rose 1.1% before Monday's open, Dow futures gained 0.1%, and S&P 500 and Russell 2000 futures rose 0.5%, rebounding from the worst week for the Nasdaq and S&P 500 since early June amid concerns over AI spending and valuations. On Stocktwits, retail sentiment on SPY turned 'bearish' and QQQ moderated to 'neutral'. Nvidia is reportedly asking Samsung, SK Hynix and Micron to use TSMC's 3-nanometer process for the base die of its next-generation HBM chips. Tesla (TSLA) won a procedural ruling in a false-advertising lawsuit, while investor Gary Black sees SpaceX buying Tesla at $420/share. AST SpaceMobile (ASTS) drew interest after falling to $40, when Boost Mobile founder Peter Adderton said he was willing to buy the stock.

Reply [EXM, STAR: REY] is among the first NVIDIA partners worldwide to earn the Physical AI Specialization within the NVIDIA Partner Network, recognizing its expertise in deploying AI-driven robotics and digital twins in real operating environments. The award followed a technical assessment covering a customer implementation, solution architecture, certified OpenUSD expertise and its development roadmap. A current example is Roboverse Reply's work with Otto Group and NVIDIA on a virtual control system at the Hermes Fulfilment logistics centre in Loehne, Germany, which connects autonomous mobile robots from different manufacturers to fleet-management and warehouse systems. Simulating and validating new layouts and workflows in NVIDIA Omniverse and Isaac before deployment speeds integration, reduces the risk of testing in live operations, and provides a blueprint for other Otto Group sites.

According to the Washington Post, the donor list for President Trump's White House ballroom project reportedly links companies and individuals to federal contracts, policy decisions and a presidential pardon. Nvidia and Apple each pledged $25 million, Google committed $22 million, and Microsoft and Palantir each pledged $10 million. The private campaign collected $333 million, including at least $77 million from anonymous donors, and 57 donors pledged at least $100,000. One highlighted case is Isabela Herrera, who pledged $2.5 million, while her father was pardoned by Trump in January 2026. The project has faced legal challenges; the Supreme Court allowed construction to proceed on Aug. 31, with Trump targeting completion in 2028.

The article estimates what a $10,000 investment in Nvidia, now worth nearly $179,000 after four years of AI-driven gains, could be worth by 2030. Nvidia's revenue in the first six months of fiscal 2027 rose 96% to $177.8 billion, and analysts expect fiscal 2027 revenue of $411.6 billion, with EPS nearly doubling to $9.31. The author cites Jensen Huang's view that chip sales will double in 2027 and a $3 trillion to $4 trillion AI infrastructure opportunity by 2030. Assuming revenue reaches $1.09 trillion in 2030 and the stock trades at half its current 18 times sales, the market cap could reach $9.8 trillion, implying 88% upside and a $10,000 stake worth more than $18,800. The article calls this a conservative estimate.

The author argues that last week's sell-off, especially Friday's, does not mean the data center and AI 'super-cycle' is over. He suggests the selling may instead reflect unwinding positions and the collapse of a hedge fund that borrowed billions from a firm that has not yet disclosed its losses. He notes that semiconductors fell nine straight days and CoreWeave's corporate bond yields spiked, arguing the bond market is squeezing debt-funded buyers. He defends Nvidia and CEO Jensen Huang, saying Nvidia's funding of AI companies differs from the circa-2000 'vendor finance' that benefited vendors whose customers did not need their products. He believes AI demand is real, citing OpenAI, Anthropic and Google's Gemini, which have monetized AI at scale.

With US inflation at 3.7% in September, driven by higher energy costs, the article highlights three fast-growing, financially sound stocks from a screener. NVIDIA's Compute & Networking unit, which supplies GPUs and AI software to cloud and enterprise customers, generates about US$275.4b, versus US$27.6b from Graphics, and the company has a market value of roughly US$5,170.6b. The article says its margins could be undermined if a cheaper or more open alternative to CUDA gains uptake. AMD's Data Center business, serving hyperscale clouds with EPYC and Instinct chips, sits within a company valued near US$863.2b, and it has Helios AI system commitments from OpenAI, Meta and Anthropic. USA Rare Earth, an early-stage producer valued at about US$4b, focuses on rare earth minerals for electric vehicles and clean energy, and received a DOE award for a pilot-scale separations project in the US.

In August, Nvidia brought together Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to set up financing platforms that could mobilize over $500 billion for AI infrastructure. The article argues that access to cheap, large-scale capital will increasingly decide who can compete in AI, giving the United States an edge through its deep capital markets. The five largest US hyperscalers are on track to spend $730 billion on capital expenditure in 2026, with up to a third expected to be financed by debt. Nvidia's model aims to turn compute into an asset that pension funds and insurers can own, though the article flags risks such as short-lived GPUs and unpredictable AI demand. It also contrasts Europe's large household savings, which are not yet well channeled into startups, with China, where as much as 80% of newly built computing capacity reportedly sits unused.

The data center buildout totals $10.3 trillion, surpassing the railroad, electrification and dot-com booms, according to a report by Columbia Business School professor Stijn Van Nieuwerburgh. He estimates its economic impact at nearly 4% of GDP, almost twice that of 19th-century railroads. Data center construction value has more than doubled to $85 billion a year, while other construction fell 8%, including a $29 billion drop in new houses and apartments. States such as Nevada are trimming tax breaks, and economist Paul Krugman argues the spending will reduce labor demand in the long run.

Apple and Nvidia are the only two companies to have reached a $5 trillion market cap. The article argues Nvidia offers more upside than Apple but carries more risk. Nvidia's revenue is projected at nearly $412 billion in fiscal 2027, up from nearly $27 billion in fiscal 2023, and the company forecasts another 70% growth next year, driven by demand for AI infrastructure. It trades at 13.5 times forward earnings on fiscal 2028 estimates, versus 36 times for Apple's fiscal 2027, while Apple's EPS is projected to rise from $6.11 to $8.83, a 45% increase on 21% revenue growth. The author warns that a major slowdown in AI infrastructure spending would hit Nvidia hardest.

Nvidia shares have gained 899% over the past five years (as of Oct. 15), and November has been mostly positive this decade, with the only decline coming in November 2025, when the stock fell 13%. Data center revenue rose 117% year over year to $89 billion in fiscal Q2 2027, with hyperscalers contributing about $49 billion. The article argues the key risk to this pattern is hyperscaler capital spending, which depends on the momentum of their cloud businesses. Hyperscaler backlogs have exceeded $2 trillion, and four of the top five will report third-quarter results within two weeks. If cloud growth slows, hyperscalers may cut capex, which would weigh on Nvidia's data center business.

The Vanguard Information Technology ETF (VGT) is a passive index fund holding 318 technology stocks. Nvidia, Apple, Microsoft and Broadcom together made up about 49% of the fund's assets as of Sept. 30. The fund has averaged 15.03% annual returns since its January 2004 inception, with 24.7% over 10 years, 20.9% over five years, 35% over three years and 35.2% over the past year. VGT does not hold Alphabet, Amazon, Meta or Tesla because they are not classified as information technology under its benchmark. The article notes that investors worried about this concentration could instead buy an S&P 500 or Nasdaq-100 ETF for broader diversification.

Nvidia CEO Jensen Huang posted in September that "AGI has arrived," while many other tech leaders are more cautious about when AGI will be reached. AGI is described as AI capable of a skilled worker's performance in most jobs, whereas today's models still need supervision and cannot work reliably over long stretches. METR research found that top models succeed only about half the time on tasks that would take a person two workdays. Sam Altman says OpenAI is "not quite yet" at AGI but expects an internal system he would call AGI by year-end, while Sundar Pichai expects it shortly after 2030. Andy Jassy has not set a date, but AWS customers have signed $496 billion in contracts for future services.