{"id":5587,"date":"2026-09-03T15:16:58","date_gmt":"2026-09-03T15:16:58","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5587"},"modified":"2026-09-03T15:16:58","modified_gmt":"2026-09-03T15:16:58","slug":"nvidia-stock-wobbly-after-hugging-face-deal-but-analysts-see-over-30-upside-ahead","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5587","title":{"rendered":"Nvidia stock wobbly after Hugging Face deal, but analysts see over 30% upside ahead"},"content":{"rendered":"
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Nvidia stock gave up most of its early gains on Thursday, trading about 0.6% higher after rising as much as 2.5% at the open.<\/p>\n

The volatile movement follows the company\u2019s announcement that it had agreed to acquire the open-source AI platform Hugging Face for $12.9 billion.<\/p>\n

The deal, which had been expected after The Information reported it last week<\/a>, marks Nvidia\u2019s second-largest acquisition on record and adds a widely used AI development platform to its growing portfolio.<\/p>\n

Nvidia CEO Jensen Huang said Hugging Face would remain an open platform for the broader AI ecosystem following the acquisition.<\/p>\n

\u201cTogether, we will scale Hugging Face\u2019s platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide,\u201d Huang wrote in a blog post announcing the deal.<\/p>\n

Nvidia expands beyond chips<\/h2>\n

The acquisition underscores Nvidia\u2019s effort to build a broader AI ecosystem around its dominant position in graphics processing units.<\/p>\n

Nvidia has become the world\u2019s most valuable company as demand for its GPUs has surged alongside the generative AI boom. <\/p>\n

But the Hugging Face deal shows the company is increasingly looking to capture value beyond the hardware powering AI workloads.<\/p>\n

Hugging Face provides tools and infrastructure used by developers and institutions to build, share and deploy AI models. <\/p>\n

Nvidia said the platform will remain open following the transaction.<\/p>\n

The $12.9 billion deal is Nvidia\u2019s second-largest acquisition, behind its $20 billion purchase of assets from chipmaker Groq in December. <\/p>\n

Before that transaction, Nvidia\u2019s largest acquisition was its nearly $7 billion purchase of Israeli chipmaker Mellanox in 2019.<\/p>\n

Morningstar sees AI demand lasting longer<\/h2>\n

The acquisition comes shortly after Nvidia delivered stronger-than-expected fiscal second-quarter results<\/a>, with Morningstar subsequently raising its fair value estimate for the stock to $310 from $280.<\/p>\n

The revised estimate represents an upside of around 30% from the stock’s current market price of around $226.<\/p>\n

Nvidia reported $96 billion in fiscal second-quarter revenue, up 106% year over year and above its $91 billion guidance. <\/p>\n

The company forecast October-quarter revenue of $108 billion, also ahead of FactSet consensus of $105 billion.<\/p>\n

Morningstar highlighted Nvidia\u2019s outlook for fiscal 2028 as the most significant part of the earnings report. <\/p>\n

The company expects revenue growth of 70% next year, implying nearly $700 billion in total revenue compared with Morningstar and FactSet estimates of roughly $570 billion.<\/p>\n

Morningstar noted that Nvidia described the forecast as supply-constrained, meaning revenue could be higher if suppliers expand capacity faster than expected.<\/p>\n

The research firm said Nvidia\u2019s visibility into AI demand and its history of beating and raising guidance could make the 70% growth forecast conservative.<\/p>\n

Memory costs pressure margins<\/h2>\n

The main weakness in Nvidia\u2019s latest results was its gross-margin outlook, according to Morningstar.<\/p>\n

Nvidia reported a 75% gross margin in the July quarter but expects that figure to fall to 74% in October, 71.5% in January and 72.5% in fiscal 2028.<\/p>\n

Morningstar attributed the pressure to sharply higher memory prices, which are an important component of Nvidia\u2019s AI systems.<\/p>\n

Despite the margin pressure, Morningstar said demand for Nvidia\u2019s AI infrastructure is likely to remain stronger for longer and maintained that the stock appeared undervalued, even after its recent gains.<\/p>\n

The Hugging Face acquisition adds another dimension to that thesis. <\/p>\n

Nvidia is no longer relying solely on the growth of AI accelerators; it is increasingly building an ecosystem spanning chips, infrastructure, software, and AI development tools.<\/p>\n

The post Nvidia stock wobbly after Hugging Face deal, but analysts see over 30% upside ahead<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Nvidia stock gave up most of its early gains on Thursday, trading about 0.6% higher after rising as much as 2.5% at the open.The volatile movement follows the company\u2019s announcement that it had agreed to acquire the open-source AI platform Hugging Face for $12.9 billion.The deal, which had been expected after The Information reported it…<\/p>\n","protected":false},"author":1,"featured_media":5588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5587"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5588"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}