TLDR
- Nvidia invested $3.5 billion in Taiwanese chipmaker MediaTek to let customers build custom AI chips that still plug into Nvidia’s wider architecture.
- Anthropic committed $35 billion to rent Nvidia-powered computing capacity from Lambda cloud.
- Nvidia’s revenue opportunity per gigawatt of AI data center power has grown from $18B (Hopper) to $40B (Vera Rubin).
- NVDA opened at $217.44 on Wednesday, with a market cap of $5.24 trillion and a P/E of 27.49.
- Nvidia reported Q2 EPS of $2.22, beating estimates of $2.09, on revenue of $96.22 billion, up 105.9% year over year.
Nvidia just made a $3.5 billion bet on a company that could help rivals build chips to compete with it. That’s not a mistake. It’s the strategy.
The investment in MediaTek, the Taiwanese chipmaker, gives customers a way to build custom AI chips and still connect them into Nvidia’s broader data center systems via NVLink Fusion. Nvidia doesn’t need to own every chip in the factory. It just needs to own the factory.
NVDA stock opened at $217.44 on Wednesday. The company carries a market cap of $5.24 trillion, a 52-week range of $164.07 to $236.54, and a beta of 2.22.
CEO Jensen Huang has been making this case clearly. As he put it on a recent call: “The input is electrons, the output is tokens.” Nvidia wants to sit at the center of that equation, whether or not it supplied the main chip.
Revenue Opportunity Is Rising Fast
The numbers behind the strategy are hard to ignore. For every gigawatt of AI data center power capacity, Nvidia estimates its revenue opportunity has climbed from around $18 billion with its Hopper architecture to $25 billion with Grace Blackwell and now $40 billion with Vera Rubin.
Vera Rubin is not just a newer GPU. It bundles Nvidia’s own CPU, GPUs, networking, memory, and other infrastructure into one package. More of the factory, more of the revenue.
The MediaTek deal fits the same pattern. Customers can use non-Nvidia chips as the main AI processor, connect them into Nvidia’s ecosystem, and Nvidia still captures a piece of the deal. AWS is already doing something similar, planning to add 2 million Nvidia GPUs while also linking its homegrown Trainium chips into Nvidia’s architecture.
Financials Back Up the Ambition
Nvidia’s most recent earnings results, reported August 26, showed EPS of $2.22 for the quarter, beating the $2.09 analyst consensus by $0.13. Revenue hit $96.22 billion, topping expectations of $92.27 billion and up 105.9% from the same quarter a year ago.
Return on equity came in at 96.04%, with a net margin of 63.66%. Analysts now forecast full-year EPS of $9.10.
The company’s board approved an $80 billion share buyback in May. A quarterly dividend of $0.25 per share is set to be paid October 1, with a record date of September 10.
On the financing side, Nvidia has partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to mobilize more than $500 billion in AI infrastructure capital. The company is increasingly pushing Wall Street to treat compute as infrastructure, something to be financed against future demand the way roads and power grids are.
Anthropic’s $35 billion commitment to Lambda’s Nvidia-powered cloud is the most recent example of that thesis playing out in real time.
Institutional investors own 65.27% of NVDA stock. Director Mark A. Stevens sold 885,000 shares on June 18 at an average price of $210.17, a 14.53% reduction in his position.
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