All articles tagged with #ai chips
Meta is pursuing a massive AI-chip supply deal with AMD that targets about 6 gigawatts of compute, potentially exceeding $100 billion in value, with a pathway for AMD to hold up to a 10% stake in the venture.
AMD inks a strategic, warrant‑heavy deal with Meta to supply Instinct AI chips for Meta’s data centers and signal a broader push to win over other hyperscalers; the arrangement could help AMD hit a tenfold data‑center revenue target by 2030, but the upside relies on Meta’s adoption and on rival AI‑chip demand amid competition and the cost of warrants.
Intel and SambaNova Systems agreed to a multiyear technical partnership to build a cloud AI service, with Intel contributing to SambaNova’s $350 million funding round and its Xeon chips powering SambaNova systems, as part of a broader push to challenge Nvidia in AI hardware; Intel’s CEO Lip-Bu Tan recused himself from SambaNova talks due to potential conflicts, with negotiations overseen by Kevork Kechichian under established governance. SambaNova remains independent, CEO Rodrigo Liang noting strong demand supports continued growth.
Advanced Micro Devices jumped after unveiling a multiyear agreement to supply Meta with 6 gigawatts of GPUs for Meta’s AI infrastructure, plus a performance-based warrant for up to 160 million AMD shares (~10% stake), signaling a bold push into AI data centers and potentially widening the gap with Nvidia despite dilution concerns.
Ahead of Nvidia’s Q4 FY2026 report (due Feb 25), hedge funds increased NVDA holdings by about 1.6 million shares, lifting the Hedge Fund Confidence Signal to Positive and signaling optimism on AI‑chip and data‑center demand. Wall Street expects EPS of $1.52 and revenue of $65.67B, and TipRanks’ consensus shows Nvidia as a Strong Buy with a target of $261.84 (~39% upside).
Meta expands its Nvidia partnership by ordering millions of Blackwell and Rubin GPUs and CPUs in a multibillion-dollar deal to boost AI inference in Meta’s data centers, reinforcing Nvidia’s lead in AI chips and easing concerns about Broadcom or Google’s TPUs eroding share. Meta will also integrate Nvidia Spectrum-X switches; pricing wasn’t disclosed, and analysts see Nvidia continuing to gain momentum as hyperscalers push full-stack silicon and networking solutions.
NVDA has been flat over six months but remains positioned for upside thanks to rising AI-chip demand, a growing backlog, and targeted gross margins in the mid-70s% for fiscal 2027. Analysts expect roughly 65% EPS growth in FY2027 and about 28% in FY2028, aided by next-gen Vera Rubin chips; if the stock maintains around a 30x earnings multiple, a move toward $300 is possible. The shares, around $183, come ahead of the Feb. 25, 2026 earnings release.
Nvidia is slated to report its Q4 FY2026 results on Feb. 25, with investors focused on AI data-center demand and management's outlook. Analysts expect EPS of $1.52 on about $65.6 billion in revenue, led by the data-center segment, and a strong guidance could reinforce Nvidia as a barometer for AI spending across the tech sector. The stock currently shows a Strong Buy consensus with meaningful upside potential.
As AI workloads intensify, memory chips—especially Micron's high-bandwidth memory—are becoming a key growth driver, with demand outpacing GPUs and a TAM expected to grow from about $35B to $100B by 2028. The piece suggests Micron could follow Nvidia's playbook, trading at a modest forward P/E around 12 and offering upside from a fast-expanding memory market, potentially earning the label of 'new Nvidia' in investors' eyes.
Nvidia is not expected to release a new gaming GPU in 2026, as a worsening memory shortage driven by AI demand forces the company to allocate memory to AI servers and slow production of the GeForce RTX 50 lineup; its planned incremental RTX 50 update (Kicker) has been delayed, delaying the RTX 60 series, though the RTX 5090 remains in high demand. Gaming revenue has shrunk to about 8% of Nvidia’s nine-month revenue to October from 35% in 2022, while AI chips generate higher margins; analysts still rate NVDA as a Strong Buy with a $260 average target.
Nvidia has delayed its RTX 50-series Super refresh to prioritise AI chips amid a RAM shortage, with current RTX 50-series production being slashed and no new gaming GPU launches planned for this year. The RTX 60-series, originally scheduled to begin mass production by end of 2027, could be pushed into 2028 or later, though Nvidia may adjust timelines if RAM availability improves and prices stabilize across hardware.
Sen. Elizabeth Warren plans a Senate resolution condemning and seeking reversal of a deal that would ship 500,000 Nvidia AI chips annually to the United Arab Emirates, tying the move to revelations that Sheikh Tahnoon bin Zayed Al Nahyan secretly acquired a 49% stake in the Trump family’s World Liberty Financial days before Trump’s inauguration. The resolution would condemn Trump’s decision to allow the sale and call for its reversal, though it faces procedural hurdles in the Senate; the Trump administration denies wrongdoing.
Nvidia’s dominance in AI chips gets a boost as Palantir and Teradyne post strong Q4 results that beat expectations, underscoring robust demand for AI-related products and signaling a favorable outlook for Nvidia ahead of its own Feb. 25 earnings report. Palantir’s revenue surged 70% YoY with solid growth in commercial and government sectors, while Teradyne saw 44% revenue growth driven by AI-related chip testing demand, helping lift Nvidia’s stock alongside the broader AI rally.
Nvidia (NVDA) trades around $191 after a roughly 7.6% drop over the last three months, contending with margin pressure from rising high-bandwidth memory costs and competition from AMD and hyperscalers, even as AI-driven demand and data-center expansion support a longer‑term rally. NVDA posted 62% revenue growth to $57.01B in the October quarter with net income of $31.91B; analysts expect fiscal 2026 revenue above $212B and AI spending to rise about 30% in 2026–2027. TipRanks’ consensus remains Strong Buy with an average target of $262.79 (about 37.5% upside) driven by AI data-center demand and a China rebound for GPU orders, despite valuation concerns.
A September 2025 letter of intent for Nvidia to invest up to $100 billion in OpenAI’s AI infrastructure has not materialized; Nvidia’s Jensen Huang says the figure was never a commitment, and Reuters reports OpenAI has been seeking alternatives and citing Nvidia chip speed concerns for inference. OpenAI has since struck deals with Cerebras, Groq, AMD, and Broadcom to diversify compute, while Nvidia emphasizes a large future investment but not at that scale. The news triggered a stock dip for Nvidia and highlighted questions about timing and strategic fit.