For Immediate ReleasesChicago, IL – February 17, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include  NVIDIA Corporation (NVDA) , Super Micro Computer, Inc. (SMCI) , Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC) .Here are highlights from Tuesday’s Analyst Blog:NVIDIA vs. SMCI: Which AI Hardware Stock ...

Core Viewpoint - NVIDIA Corporation (NVDA) is currently positioned as a stronger investment compared to Super Micro Computer, Inc. (SMCI) due to its superior profitability metrics and robust demand for its AI chips, despite both companies benefiting from the AI infrastructure boom [1][12]. Group 1: NVIDIA's Performance - NVIDIA's revenues surged 62% year over year and 22% sequentially to $57 billion in the fiscal third quarter of 2026, with expectations for the fiscal fourth quarter to reach nearly $65 billion, plus or minus 2% [2][8]. - The company's gross margin increased to 73.4% in fiscal third-quarter 2026 from 72.4% in the previous quarter, indicating strong profitability [6][8]. - NVIDIA's return on equity (ROE) stands at an impressive 99.2%, showcasing its effective management and profitability compared to competitors [7][8]. Group 2: Supermicro's Performance - Supermicro's fiscal second-quarter 2026 sales climbed 123% year over year to $12.7 billion, significantly exceeding analysts' expectations of $10.4 billion [3][4]. - However, Supermicro's gross margins fell to 6.3% in fiscal second-quarter 2026 from 11.8% in the same quarter last year, indicating challenges in profitability [6][10]. - The company has a debt-to-equity ratio of 66.9%, which is considerably higher than NVIDIA's 6.3%, suggesting greater financial risk [10]. Group 3: Market Dynamics - The thawing trade tensions between the United States and China are expected to support NVIDIA's sales, as the U.S. government has approved the shipment of NVIDIA's H200 AI chips to China [2]. - Supermicro is scaling its AI server and storage capabilities, with its Data Center Building Block Solutions (DCBBS) gaining traction among AI clients [4][5].

Core Viewpoint - Bitcoin is experiencing significant selling pressure and is considered a highly speculative asset, while NVIDIA is positioned as a strong long-term investment due to its solid fundamentals and growth prospects [2][9]. Cryptocurrency Market - Bitcoin's price has declined from an all-time high of $127,000 in October to around $67,000, marking a year-to-date drop of 22.9% [2][3]. - The decline in Bitcoin's price is attributed to profit-taking, reduced institutional interest, and geopolitical tensions that have shifted investor focus to safer assets [3][4][9]. - The Crypto Fear & Greed Index indicates a prevailing sentiment of "extreme fear" in the cryptocurrency market [4]. NVIDIA's Performance - NVIDIA is benefiting from the AI boom, with revenues increasing significantly due to high demand for its advanced chips, particularly the Blackwell architecture [5][10]. - The company anticipates global data center spending to reach between $3 trillion and $4 trillion annually by 2030, presenting substantial growth opportunities [6]. - NVIDIA's fiscal fourth-quarter 2026 revenue is projected to be nearly $65 billion, with a 62% year-over-year increase in the third quarter [7][10]. - The company's net profit margin stands at 53%, surpassing the industry average of 50.1%, highlighting its strong growth potential [10].

Core Insights - NVIDIA Corporation (NASDAQ:NVDA) is recognized as one of the best performing stocks in the S&P 500 over the past five years [1] Group 1: U.S.-China Trade and Licensing - NVIDIA is required to comply with strict U.S. licensing terms for exports of its H200 AI chips to China, as stated by the Commerce Secretary [2] - The licensing conditions are aligned with a U.S.-China trade truce established in October of the previous year [2] - NVIDIA has been resisting certain provisions, including 'Know Your Customer' requirements, indicating ongoing geopolitical constraints on its China-facing AI revenue [3] Group 2: Investment and Acquisitions - NVIDIA is nearing a $20 billion stake acquisition in OpenAI as part of the AI startup's funding round, which seeks up to $100 billion at an $830 billion valuation [4] - The deal is not yet finalized, but NVIDIA's CEO Jensen Huang has indicated plans for a significant investment, potentially the company's largest ever [4] - Concerns related to chip performance have previously paused NVIDIA's earlier $100 billion investment plans [5] Group 3: Competitive Positioning - NVIDIA's leading role in powering generative AI infrastructure is highlighted by its strategy to maintain leadership in high-performance AI chips amid rising competition from companies like Amazon and SoftBank [6] - The company focuses on designing GPUs and AI computing platforms for various markets, including data centers, gaming, and enterprise [6] - NVIDIA supports high-performance graphics, AI workloads, and accelerated computing solutions on a global scale [6]

Core Viewpoint - NVIDIA Corp is facing challenges in its gaming, China, and AI partnership sectors, which may impact its stock performance and future growth prospects [1]. Group 1: Gaming Sector - NVIDIA may skip the release of a new gaming graphics chip this year due to an AI-driven global memory-chip shortage, marking the first year without a new gaming GPU launch in nearly three decades [2]. Group 2: China Market - NVIDIA's plans to resume shipments of H200 AI chips to China are still on hold, pending a national security assessment by the State Department, despite the Commerce Department's review being completed [3]. - Chinese customers have paused new H200 orders while awaiting clarity on import terms, as Alibaba accelerates the development of its own high-end AI chips to reduce reliance on NVIDIA [4]. Group 3: AI Partnership - NVIDIA CEO Jensen Huang is reportedly close to finalizing a $20 billion investment in OpenAI, which would be the company's most significant investment in the startup to date [5]. - There is scrutiny over the partnership between NVIDIA and OpenAI, with suggestions that OpenAI may explore alternatives to some NVIDIA chips, although both CEOs have denied these claims [6].

Group 1 - The Trump administration is open to allowing China's ByteDance to purchase Nvidia's H200 chips, but Nvidia has not agreed to the proposed conditions for their use [1][2] - Nvidia is currently negotiating with the U.S. government regarding the licensing terms for shipping H200 AI chips to Chinese companies, acting as an intermediary [2][3] - The U.S. Commerce Department has issued regulations that require applicants to certify and provide data to ensure rigorous Know Your Customer (KYC) procedures are in place to prevent unauthorized access [6] Group 2 - China has granted preliminary approval for major tech companies, including ByteDance, Tencent, and Alibaba, to import the chips, although the regulatory conditions are still being finalized [4] - The U.S. government's recent actions represent ongoing complexities in the U.S.-China tech war, with concerns about national security and the potential military applications of the chips by China [5] - The Commerce Department's new regulations include requirements for applicants to provide a list of remote users associated with companies in countries of concern, such as Iran and Venezuela [6]

Core Insights - The rise of artificial intelligence (AI) has significantly boosted the stock performance of NVIDIA Corporation (NVDA) and Palantir Technologies Inc. (PLTR), with Palantir's shares outperforming NVIDIA's over the past year [1] Group 1: NVIDIA Corporation (NVDA) - Eased U.S.-China trade tensions have allowed Chinese tech companies to purchase NVIDIA's H200 AI chips, potentially enhancing NVIDIA's sales [2] - Projected data center spending is expected to reach between $3 trillion and $4 trillion annually by 2030, providing NVIDIA with substantial revenue growth opportunities [3] - NVIDIA anticipates fiscal fourth-quarter 2026 revenues to approach $65 billion, with a year-over-year increase of 62% and a sequential increase of 22% in third-quarter fiscal 2026 revenues, which reached $57 billion [4] - NVIDIA's return on equity (ROE) stands at 103.9%, indicating stronger profitability compared to Palantir [12] - NVIDIA's shares are relatively more affordable, trading at a price/earnings ratio of 38.67 compared to Palantir's 151.81 [13] Group 2: Palantir Technologies Inc. (PLTR) - Palantir has reported strong quarterly results driven by rising demand for its Artificial Intelligence Platform (AIP), which is increasingly adopted by U.S. commercial clients and government [5] - For the fourth quarter of 2025, Palantir's revenues from U.S. commercial clients surged 137% year over year to $507 million, while government revenues increased 66% year over year to $570 million [6] - Palantir's future revenue forecast for full-year 2026 is between $7.182 billion and $7.198 billion, more than double its 2025 revenue of $3.320 billion [7] - Palantir's competitive advantage is supported by its platforms, Gotham and Foundry, which face minimal competition, ensuring predictable cash flows [8] - However, Palantir's reliance on government contracts poses risks, particularly in the event of defense budget cuts [10]

Core Insights - NVIDIA Corporation (NVDA) and Taiwan Semiconductor Manufacturing Company Limited (TSMC) have experienced significant stock price increases of 59.9% and 62% respectively over the past year, driven by strong demand for AI technologies and easing trade tensions [1][2]. TSMC Insights - TSMC is expected to see continued growth due to strong demand for its advanced process technologies, projecting revenues of $34.6 billion to $35.8 billion for Q1 2026, which represents a 25.5% year-over-year increase and a 1.9% sequential rise [3][4]. - The company's gross profit margin for Q1 2026 is anticipated to be between 63% and 65%, slightly up from 62.3% in Q4 2025, driven by increased demand from AI hyperscalers [4]. - TSMC's earnings growth is projected at 46.2% for the current quarter and 29.1% for the full year, with a Zacks Consensus Estimate for EPS of $14.01 indicating a 27.1% year-over-year growth [5]. - Analysts are optimistic about TSMC's stock, with an average short-term price target of $408, suggesting a 19.2% increase from the last close, and a highest target of $520 indicating a potential upside of 51.9% [6]. NVIDIA Insights - NVIDIA is positioned for growth due to eased U.S.-China trade tensions, allowing selective Chinese tech companies to purchase its H200 AI chips, which could enhance its market presence in the region [10][11]. - The company anticipates revenues of nearly $65 billion for the fiscal fourth quarter of 2026, with expected earnings growth rates of 70.8% for the current quarter and 55.9% for the full year [12][13]. - The Zacks Consensus Estimate for NVIDIA's EPS is $4.66, reflecting a year-over-year growth of 10.7% [13]. - Brokers project an average short-term price target for NVDA stock at $254.81, indicating a 33.1% increase from the last closing price, with the highest target at $352 suggesting an upside of 83.8% [15].

Group 1 - Alibaba Group Holding Limited is recognized as one of the Top 15 Chinese Companies on US Exchanges [1] - Moonshot AI, backed by Alibaba, has upgraded its flagship model Kimi K2.5, claiming superior video-generation and agentic capabilities compared to top U.S. AI models [1] - Alibaba's generative AI model Qwen3-Max-Thinking has also been reported to outperform U.S. rivals on a benchmark test called 'Humanity's Last Exam' [2] Group 2 - China has approved three major tech companies, including Alibaba, to purchase over 400,000 Nvidia H200 AI chips, indicating a significant move in the AI sector [2] - This approval is part of China's strategy to ease trade tensions with the U.S. and supports the ongoing AI advancements by Chinese tech giants [2] - Alibaba is positioned at the forefront of China's generative AI expansion, highlighting its strategic importance in the tech landscape [2][3]

Core Viewpoint - NVIDIA is experiencing a high valuation with a forward P/E ratio of 41.07, significantly above the industry average of 28.99, indicating market confidence despite potential risks from global competition and trade tensions [2][3]. Group 1: Market Position and Valuation - NVIDIA's current forward P/E ratio of 41.07 suggests a volatile stock if growth expectations are not met, reflecting a stretched valuation compared to the Semiconductor - General industry's average of 28.99 [2]. - The market remains confident in NVIDIA's future growth, as indicated by its elevated P/E ratio, positioning it as comparatively less risky within the cyclical chip industry [3]. Group 2: Growth Drivers - Easing U.S.-China trade tensions have allowed China to authorize the purchase of NVIDIA's H200 AI chips, with initial approvals worth around $10 billion from major tech players like ByteDance and Alibaba [4]. - Global data center capital spending is projected to reach between $3 trillion and $4 trillion annually by 2030, providing significant opportunities for NVIDIA to sell its computing hardware [5]. - Strong demand for NVIDIA's next-generation Blackwell chips and cloud GPUs is expected to further drive future revenues [5]. Group 3: Financial Performance - NVIDIA anticipates fiscal fourth quarter 2026 revenues to reach nearly $65 billion, with a year-over-year increase of 62% reported for the fiscal third quarter of 2026, amounting to $57 billion [6]. - The company maintains a net profit margin of 53%, surpassing the industry's average of 49.34%, indicating robust growth potential [7]. - NVIDIA holds a Zacks Rank 1 (Strong Buy), with a Zacks Consensus Estimate for earnings per share at $4.66, implying a year-over-year growth of 10.7% [8].