Core Viewpoint - Nvidia's stock is considered historically cheap despite positive indicators, with expectations for a strong earnings report and guidance on February 25, 2026 [1] Group 1: Sales and Market Demand - Nvidia is expected to resume chip exports to China, which were halted in April 2025, potentially leading to significant revenue growth [4] - Revenue expectations for China in Q2 FY 2026 were $8 billion, and if this returns to guidance for Q1, it could exceed market expectations [5] - Domestic demand remains strong even if sales to China do not meet expectations [7] Group 2: Client Spending and Industry Trends - Major AI hyperscalers like Alphabet, Amazon, and Meta Platforms are planning record capital expenditures in 2026, with Alphabet expected to spend $175 billion to $185 billion, Amazon $200 billion, and Meta $115 billion to $135 billion [8] - AI spending is projected to reach record levels in 2026, positioning Nvidia favorably as a primary chip provider [10] Group 3: Technological Advancements - Nvidia is launching its new Rubin chip architecture, which offers significant efficiency improvements over the previous Blackwell generation, potentially driving companies to upgrade their GPUs [11] - The new technology is expected to support continued growth for Nvidia, although the market has not fully recognized this potential [12] Group 4: Stock Valuation - Nvidia's stock is trading at less than 25 times forward earnings, near its lowest level in three years, and only slightly more expensive than the S&P 500, which trades at 21.8 times forward earnings [13][15] - A potential 20% increase in stock price is anticipated, bringing it to around 30 times forward earnings, which is deemed a more appropriate valuation for Nvidia [16]

Core Investment and Capacity Expansion - Nvidia has invested $2 billion in CoreWeave to enhance the data center company's AI computing capacity, aiming to add over 5 gigawatts by 2030 [1] - Nvidia purchased CoreWeave's Class A shares at $87.20 per share as part of the investment [1] Product Integration and Technological Advancements - CoreWeave will integrate Nvidia's products, including the new Rubin chip architecture, Bluefield storage systems, and the Vera CPU line [2] - Nvidia will assist CoreWeave in acquiring land and power for data centers and will collaborate on integrating AI software and architecture into Nvidia's reference architecture for cloud businesses [7] Financial Position and Business Model - CoreWeave has raised significant debt, with $18.81 billion in obligations as of September 2025, while reporting $1.36 billion in revenue for Q3 [3] - The CEO has defended the company's debt-funded business model, emphasizing collaboration in the AI industry to address supply and demand changes [4] Strategic Acquisitions and Partnerships - Since its IPO in March last year, CoreWeave has made several acquisitions, including Weights & Biases, OpenPipe, Marimo, and Monolith, to enhance its technology stack [4] - CoreWeave has expanded its cloud partnership with OpenAI and counts major hyperscalers like OpenAI, Meta, and Microsoft as customers [5][4] Market Reaction and Industry Impact - Following the announcement of the deal, CoreWeave's shares increased by over 15% [7] - Nvidia continues to be a significant player in the AI boom, making numerous investments to support the rapid development of AI technology [8]

Core Insights - Nvidia has launched the new Rubin computing architecture, which is positioned as the state of the art in AI hardware and is currently in production, with further ramp-up expected in the second half of the year [1][2] Group 1: Architecture and Features - The Rubin architecture is designed to meet the increasing computational demands of AI, with Nvidia CEO Jensen Huang stating that it is in full production [2] - The architecture consists of six separate chips, including a central Rubin GPU, and addresses bottlenecks in storage and interconnection with improvements in Bluefield and NVLink systems [4] - A new Vera CPU is included in the architecture, aimed at enhancing agentic reasoning capabilities [4] Group 2: Performance Metrics - The Rubin architecture is reported to operate 3.5 times faster than the previous Blackwell architecture for model-training tasks and five times faster for inference tasks, achieving up to 50 petaflops [8] - It also supports eight times more inference compute per watt compared to its predecessor [8] Group 3: Market Impact and Partnerships - Rubin chips are set to be utilized by major cloud providers, including partnerships with Anthropic, OpenAI, and Amazon Web Services, as well as in HPE's Blue Lion supercomputer and the upcoming Doudna supercomputer at Lawrence Berkeley National Lab [3] - The competition for AI infrastructure is intensifying, with significant demand for Nvidia chips and the facilities to support them [9] - Huang has projected that between $3 trillion and $4 trillion will be invested in AI infrastructure over the next five years [10]