NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Best NASDAQ Stocks to Buy For Long Term. On September 16, Reuters reported that NVIDIA Corporation’s (NASDAQ:NVDA) newest AI chip for the Chinese market, RTX6000D, is not selling well. According to two people with knowledge of the procurement discussions, some big tech companies in China have decided not to place orders for NVIDIA Corporation’s (NASDAQ:NVDA) RTX6000D. Uncertainty Around NVDA Chips in China The RTX6000D is mainly designed for AI inference ...

Oracle - Oracle is believed to play a key role in a potential TikTok deal involving the Trump administration and China, which could allow TikTok to continue operations in the US if a framework deal is finalized [2][5] - The precise structure of the deal remains unclear, but it is expected to involve multiple companies, with significant attention on control over TikTok's algorithms [3][5] - Commercial terms have reportedly been agreed upon, although confirmation from Oracle or the White House has not been obtained [4] Nvidia - Nvidia's RTX 6000D, designed to fill the gap left by previously banned GPUs, has reportedly received low interest in China due to ongoing trade tensions [7][9] - Estimates suggest Nvidia may produce between 1.5 to 2 million of these GPUs by the end of the year, potentially leading to excess inventory [7] - The specific GPUs Nvidia can sell to China have fluctuated due to trade regulations, and competition is increasing as companies like Alibaba begin producing their own chips [8][11]

Core Viewpoint - Nvidia's newly launched AI chip RTX6000D faces weak market demand in China, with major tech companies reportedly not placing orders due to its high price and performance issues compared to the banned RTX5090 [2][3]. Group 1: Market Demand and Performance - The RTX6000D is primarily designed for AI inference tasks but is considered expensive relative to its performance [2]. - Sample tests indicate that the RTX6000D's performance is inferior to that of the RTX5090, which is available through gray market channels at less than half the price of the RTX6000D, approximately 50,000 RMB (around 7,000 USD) [2]. - Despite the weak demand, analysts from JPMorgan and Morgan Stanley had optimistic forecasts, predicting production of 1.5 million and 2 million units of RTX6000D, respectively, in the second half of the year [3]. Group 2: Regulatory and Trade Context - The ability to obtain advanced AI chips has become a focal point in the US-China trade tensions, with China's market regulator investigating Nvidia for potential antitrust violations [5]. - Chinese regulatory authorities have also questioned companies like Tencent and ByteDance regarding their procurement of the H20 chip, expressing concerns about information risks [5]. - Nvidia emphasizes that its products do not have any "backdoor risks" that would allow remote access or control [5]. Group 3: Chip Specifications and Future Prospects - The RTX6000D is based on Nvidia's latest Blackwell architecture, featuring a bandwidth of 1398 GB/s, slightly below the 1.4 TB/s threshold set by export restrictions [6]. - The H20 chip, priced between 10,000 to 12,000 USD, utilizes an older Hopper architecture but offers a higher bandwidth of 4 TB/s; however, its shipment has not yet commenced due to regulatory issues [6]. - The upcoming B30A chip, also based on the Blackwell architecture, is expected to deliver performance up to six times that of the H20 at a price only double that of the H20, pending approval from Washington [6].

路透：英伟达本周开始出货RTX6000D。有消息人士称，阿里巴巴、腾讯和字节跳动等中国科技巨头正等待他们对H20芯片的订单获得处理。这些公司还希望英伟达的B30A（比H20性能更强）能够获得美国政府的销售许可。英伟达发言人在声明中表示，“市场竞争激烈，我们尽力提供最好的产品。” ...

Core Insights - Nvidia's RTX6000D AI chip is experiencing weak demand in the Chinese market, with major tech firms refraining from placing orders due to its high cost and performance issues compared to banned alternatives [1][2][5] - Chinese tech giants are awaiting clarity on orders for Nvidia's H20 chip, which has regained permission for sale, while also hoping for approval of the more powerful B30A chip [3][4] - The demand for RTX6000D contrasts with optimistic production forecasts from analysts, with expectations of 1.5 million to 2 million units in the pipeline for the second half of the year [5] Industry Context - The availability of advanced AI chips in China is a significant point of contention in U.S.-China trade relations, with the U.S. easing some export restrictions while China pushes for domestic chip adoption [7] - Nvidia faces additional challenges as Beijing has accused the company of violating anti-monopoly laws, adding uncertainty to its operations in China [8]

Core Viewpoint - Nvidia and Meta Platforms are positioned to benefit from the business-friendly tax policies enacted by President Trump through the One Big Beautiful Bill Act, which includes provisions favorable to these companies [1][9]. Group 1: Nvidia - Nvidia reported a 56% increase in sales to $46.7 billion for its fiscal 2026 second quarter, driven by strong growth in data center and automotive segments, with non-GAAP earnings rising 54% to $1.05 per diluted share [3]. - The company is expected to maintain its leadership in AI infrastructure as demand for technologies like autonomous robots and self-driving vehicles grows, providing both hardware and software solutions for AI development [4]. - Nvidia's stock could benefit from the reversal of export restrictions, allowing sales of its H20 GPU to China, with potential future sales of a scaled-back version of its Blackwell GPUs [6]. - Wall Street analysts project Nvidia's earnings to grow by 34% annually over the next three years, making its current valuation of 58 times earnings appear fair [7]. Group 2: Meta Platforms - Meta Platforms reported a 22% revenue increase to $47.5 billion in its second quarter, with GAAP earnings jumping 38% to $7.14 per diluted share [8]. - The One Big Beautiful Bill Act made the corporate income tax rate of 21% permanent, allowing companies like Meta to avoid profit margin pressure from higher taxes and continue aggressive share repurchases [9]. - Meta is the second-largest ad tech company globally, with ad tech spending expected to grow at 14% annually through 2030, supported by its extensive user base across platforms like Facebook, Instagram, and WhatsApp [10]. - The company is leveraging AI to enhance user experience, resulting in a 5% increase in time spent on Facebook and a 6% increase on Instagram [11]. - Meta has introduced new advertising opportunities on Threads and WhatsApp, with potential future revenue from its generative AI application, which has over 1 billion monthly active users [12]. - Analysts expect Meta's earnings to grow at a 17% annualized rate over the next three years, making its current valuation of 27 times earnings reasonable for long-term investors [13].

Core Viewpoints - Concerns about AI capital expenditure (capex) peaking in 2026 are overstated, with strong growth certainty expected in 2026-2027 [1][2] - Major cloud service providers (CSPs) are well-positioned to sustain capital expenditure growth due to increasing operating cash flow [4][6] - The entry of new investment players and the expansion of AI application scenarios are driving continued investment in AI [2][9] AI Capital Expenditure Growth - Morgan Stanley predicts a minimum growth rate of 20% for AI capex in 2026, with potential for further growth in 2027 if enterprise-level AI adoption increases [2][8] - The top four CSPs (Google, Amazon, Meta, Microsoft) are expected to see a compound annual growth rate (CAGR) of 23% in EBITDA and operating cash flow from 2022 to 2026 [6][8] - Capital expenditure for these CSPs is projected to rise from $150 billion in 2022 to $398 billion in 2026, while free cash flow is expected to maintain a CAGR of 16% [6][8] Investment Opportunities - The Chinese market for AI capex is still in its early stages, with significant potential for growth driven by companies like ByteDance and Alibaba [12] - Data center companies and server manufacturers are positioned to benefit from both NVIDIA and domestic chip supply growth [12] - The semiconductor supply chain, particularly for Google TPU and NVIDIA, is expected to see robust growth, with Google leading in 2026 [13][14] Pricing Trends and Earnings Adjustments - Price increases in non-AI sectors are becoming widespread, which could drive the next round of earnings per share (EPS) adjustments [18] - Areas experiencing price increases include DRAM, BT substrates, and power ICs, while some sectors may still face downward pricing pressure [18] - The valuation of Asian tech stocks remains reasonable, with expectations for further EPS adjustments driven by rising prices and sustained AI demand [19][20]

Company Overview - Nvidia is currently the largest market capitalized firm in the world, valued at $4.34 trillion, with a 7.6% weighting in the S&P 500 and 14.4% in the Nasdaq-100 [2][3] - Over the past two decades, Nvidia has generated an annualized total return of 39.7%, significantly outperforming the S&P 500's 10.8% return during the same period [3] Investment Performance - A $1,000 investment in Nvidia 20 years ago would be worth approximately $793,000 today, compared to $7,900 for the same investment in the S&P 500 [4] - Nvidia stock has shown notable post-earnings moves, averaging a 6.1% return the day after earnings reports [1] Recent Developments - Nvidia is reportedly developing a new chip, the B30A, aimed at the Chinese market, which could provide a new growth engine for the company [8][9] - Hedge funds were net buyers of Nvidia stock in Q2, with 82 hedge funds initiating new positions, indicating strong institutional interest [16] Earnings Expectations - Analysts expect Nvidia's upcoming earnings report to reflect strong demand, particularly due to the resumption of H20 shipments and increasing orders for GB300 infrastructure [12][22] - Stifel analyst raised Nvidia's price target to $212, citing the company's attractive valuation and leadership in AI infrastructure [11] Market Position and Competition - Nvidia's leadership in AI infrastructure remains unchallenged, although there are concerns regarding competition from companies like AMD and Broadcom [18][19] - The company faces potential regulatory challenges related to U.S. export restrictions, particularly concerning its operations in China [10][13] Dividend and Share Buybacks - Nvidia pays a small quarterly dividend of $0.01 per share, resulting in an annual yield of 0.02%, which is below the S&P 500's yield of 1.2% [20] - In fiscal 2025, Nvidia paid approximately $834 million in dividends and repurchased $33.7 billion in stock [21] Upcoming Events - Nvidia will release its fiscal second-quarter earnings report on August 27, 2025, followed by a conference call [25]

Core Viewpoint - NVIDIA is positioned at the forefront of the next technological revolution, which will follow AI advancements, specifically in robotics [1][2]. Industry Overview - The robotics industry is currently valued at approximately $75 billion and is projected to grow by nearly 150% over the next five years, translating to a 20% compound annual growth rate (CAGR) [3]. - AI is essential for robotics, acting as the driving force behind advancements in robotic technology [2]. Company Positioning - NVIDIA has a significant presence in the robotics and automation sector, which currently constitutes about 1% of its overall business but is experiencing rapid growth, increasing by roughly 75% in the first half of the year [3]. - The company has adopted a full-stack approach to technology, providing end-to-end solutions for developers integrating AI into robotics [2]. Analyst Sentiment - Analyst sentiment towards NVIDIA remains predominantly bullish, with 85% of analysts rating it as a Buy or higher, and the stock is classified as a Moderate Buy [4][5]. - The price target for NVIDIA is set at $189.28, indicating a potential upside of 7.76% from the current price of $175.64 [8]. Valuation Metrics - NVIDIA's stock is valued at approximately 42 times its earnings for 2025, with projections suggesting a significant increase in forward earnings by 200% to 300% over the next decade [7]. - The stock is expected to trade at around 12 times its forward earnings by 2030 and 2035, reflecting a favorable long-term valuation outlook [7]. Upcoming Catalysts - The next significant catalyst for NVIDIA will be its earnings report at the end of the month, with analysts forecasting a 50% year-over-year revenue increase, contributing to a two-year total growth of nearly 250% [11]. - Developments such as the introduction of the B30A, an AI-specific GPU, are anticipated to further drive NVIDIA's market position [8].

Group 1: Institutional Trading Insights - Today, 33 stocks were listed on the institutional trading leaderboard, with 18 stocks seeing net purchases and 25 stocks experiencing net sales [1] - The top three stocks with the highest net purchases by institutions were: Liou Co., Ltd. (¥471 million), Lingyi Manufacturing (¥363 million), and Jiu Gui Jiu (¥166 million) [1][2] Group 2: Semiconductor Industry Developments - The domestic chip industry is seeing significant advancements, with companies like Shengke Communication delivering high-end 800G switching capacity chips for data centers, expected to expand market reach [4] - Huaxia Securities predicts that by 2025, domestic chip achievements will be substantial, with Huawei's Pura80 series featuring the Kirin 9020 chip, showcasing supply chain breakthroughs [4] - The C6P series CPU from Lanjing Technology is noted for its competitive advantages, indicating a strong momentum in domestic chip innovation [6] Group 3: Apple Supply Chain Dynamics - Yian Technology's subsidiary has capabilities in producing folding screen hinge components, which are already applied in several market-released brand models [7] - Chaoyang Technology is involved in the production of acoustic products and precision components, entering the supply chain of major brands like Apple [7] - Reports indicate that Apple's iPhone 17 has entered mass production, with significant material stockpiling exceeding 90 million units, suggesting a robust growth cycle driven by hardware innovation and AI integration [7]