TLDR
- Nvidia stock rose 1.1% to $206.99 Thursday as the company highlighted European AI chip demand at VivaTech in Paris
- French AI start-up Mistral raised $830 million to build 200MW of AI computing capacity across Europe by 2027; Nvidia has invested in Mistral
- Nvidia and Mistral are part of a consortium to build a 1.4 gigawatt data center campus near Paris
- Nvidia posted Q1 EPS of $1.87, beating estimates of $1.76, with revenue of $81.62 billion — up 85.2% year over year
- Nvidia raised its quarterly dividend from $0.01 to $0.25 and approved an $80 billion share buyback program
Nvidia (NVDA) stock climbed 1.1% to $206.99 in early Thursday trading, with investors watching the chip maker use this week’s VivaTech conference in Paris to make a push into the European AI market.
The stock is up 9.8% year to date through Wednesday’s close, and has gained 41% over the past 12 months. Nvidia’s 52-week range sits between $142.03 and $236.54, with a current market cap of $4.95 trillion.
The company’s European pitch centers on French AI start-up Mistral, which recently raised $830 million in debt financing. That money is earmarked for building 200 megawatts of AI computing capacity across Europe by 2027. Nvidia is an investor in Mistral.
The two companies are also part of a larger consortium planning a 1.4 gigawatt data center campus near Paris. That would put it in the same league as the biggest facilities currently operating in the United States.
“AI infrastructure is coming online. AI agents are running in production, start-ups are deploying applications,” Nvidia wrote in a blog post Wednesday, pointing to the growing French AI ecosystem as a key target market.
The timing isn’t accidental. European leaders have grown uneasy about depending on American AI platforms, a concern that got louder after the Trump administration banned foreign use of two Anthropic models last week.
French President Emmanuel Macron put it bluntly at the G-7 this week: “We won’t buy any models made by these [American AI] companies if overnight, you can just flip the switch.”
That kind of political pressure is opening doors for Nvidia, which supplies hardware rather than AI models — and is positioning itself as a neutral infrastructure provider.
Strong Earnings Backing the Move
The European expansion comes on the back of a strong quarter. Nvidia reported Q1 EPS of $1.87, beating the $1.76 consensus estimate. Revenue came in at $81.62 billion, topping forecasts of $78.42 billion and up 85.2% from the same period last year.
Net margin stood at 62.97%, with return on equity at 96.94%. Analysts now forecast full-year EPS of $8.65.
Dividend Hike and Buyback
Nvidia also announced a dividend increase, raising its quarterly payout from $0.01 to $0.25 per share — payable June 26 to shareholders of record as of June 4. The company’s board also approved an $80 billion share repurchase program on May 20.
Institutional interest remains strong. State Street owns over 991 million shares valued at roughly $184.9 billion. Geode Capital Management holds about 588.8 million shares. Hedge funds and institutional investors collectively own 65.27% of the stock.
Analyst sentiment is firmly positive. The consensus rating is “Buy” with a price target of $305.67. Raymond James holds a “Strong Buy” with a $330 target. Truist recently raised its target from $287 to $307.
Zacks did downgrade the stock from “Strong Buy” to “Hold” on May 21, one of the few cautious voices in an otherwise bullish analyst community.
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