NVDA Stock Alert: Nvidia CEO Jensen Huang Says Chips Are 'Investable Asset Class'

A photo of CEO Jensen Huang in front of the Nvidia logo by FotoField via Shutterstock Nvidia Corporation (NVDA) is once again putting itself at the center of the artificial intelligence (AI) investment boom, but this time the story goes beyond selling high-performance chips. CEO Jensen Huang says AI compute is becoming an “investable asset class,” as the company works together with some of the world’s largest financial institutions to mobilize more than $500 billion in third-party capital for AI infrastructure. Nvidia is partnering with six major asset managers: Apollo Global Management (APO) , Blackstone (BX) , BlackRock (BLK) , Brookfield Asset Management (BAM) , The Goldman Sachs Group (GS) , and KKR & Co. (KKR) , to mobilize more than $500 billion in financing for AI data centers and Nvidia hardware. The initiative aims to make AI computing infrastructure a financeable, revenue-generating asset similar to commercial real estate or other long-term infrastructure. CEO Jensen Huang argues that Nvidia chips are now productive, long-lived, transferable and increasingly essential to modern infrastructure, challenging the traditional view that GPUs rapidly depreciate. The financing could help hyperscalers, AI labs and enterprises fund massive AI investments without relying entirely on their own balance sheets. Many experts are now seeing the effort as a potential new asset class and a major development in financial engineering. However, the strategy faces questions over whether GPUs can retain value as newer chip generations emerge and as Big Tech’s huge AI capital expenditures put pressure on cash flows. About Nvidia Stock Nvidia is a global leader in accelerated computing and AI, renowned for pioneering the GPU that revolutionized gaming, data centers , and AI-driven computing. Headquartered in Santa Clara, California, Nvidia’s technology now powers everything from high-performance gaming and cloud computing to autonomous vehicles and generative AI applications. With a market cap of $5.4 trillion, Nvidia stands among the world’s most valuable companies, driven by its dominance in AI infrastructure and continued innovation in next-generation chip design. NVDA has delivered exceptional long-term stock gains, reinforcing its position as one of the biggest beneficiaries of the AI investment boom. Over the past five years, the stock has gained 976.5% , meaning an investor who held the shares through the period would have seen their investment multiply several times. The more recent performance has been considerably more measured. Over the past 52 weeks, NVDA has gained 23.9%, while its year-to-date (YTD) gain is 20.7%. Nvidia’s long-term trajectory remains extraordinary, but the stock has faced periods of consolidation as investors weigh its elevated valuation, massive AI capital spending and the sustainability of hyperscalers’ demand for GPUs. More recently, momentum has improved. Nvidia shares gained 3% on Aug. 12 , as investors appeared to regain confidence in the company’s AI infrastructure strategy following the recent sell-off. The Aug. 12 gain was particularly notable because Nvidia had fallen 2.9% on Aug. 10 after the $500 billion financing plan was initially reported and marginally on Aug. 11. Some investors had worried that Nvidia financing its customers might not be an effective idea or represent new demand. Nevertheless, the subsequent recovery suggests that investors were becoming more comfortable with the strategic rationale behind the financing push. www.barchart.com Nvidia trades at 24.75 times forward price-to-earnings, which is currently a discount compared to industry peers and the historical average. Q1 Earnings Beat Expectations Nvidia delivered another exceptional quarter when it reported first-quarter fiscal 2027 results on May 20, further cementing its leadership in the rapidly growing AI infrastructure market. For the quarter ended Apr. 26, 2026, Nvidia posted record revenue of $81.6 billion , an 85% year-over-year (YOY) increase, while net income jumped 211% YOY to $58.3 billion. On a non-GAAP basis, earnings per share (EPS) rose 140% from the prior-year period to $1.87, beating analyst estimates. Non-GAAP gross margin expanded to 75% from 60.8% a year earlier, underscoring the company’s strong pricing power and favorable AI product mix. Moreover, the Data Center segment remained Nvidia’s biggest growth driver, with revenue surging 92% YOY to a record $75.2 billion. Data Center networking revenue soared 199% YOY to $14.8 billion, while computing revenue accounted for the remaining $60.4 billion. Its Edge Computing revenue increased 29% YOY to $6.4 billion, supported by demand across gaming GPUs, autonomous driving, robotics, and AI-enabled edge devices. Further, management pointed to accelerating adoption of Blackwell systems and highlighted expanding opportunities in agentic AI and enterprise AI infrastructure. Additionally, Nvidia issued another optimistic outlook for the second quarter of fiscal 2027, forecasting revenue of $91 billion, plus or minus 2%, and a non-GAAP gross margin of about 75%. The guidance assumes no contribution from China Data Center compute revenue due to ongoing U.S. export restrictions. Street expects Nvidia’s momentum to continue, with analysts forecasting EPS growth of 92.3% YOY to $8.79 in fiscal 2027 , followed by another 38% increase to $12.13 in fiscal 2028. The consensus EPS estimate for Q2 (about to be reported on Aug. 26) is $2.01, a rise of 103% YOY. Wall Street Remains Optimistic About Nvidia’s Prospects Wells Fargo recently reiterated its “Overweight” rating on Nvidia on Aug. 11, and maintained its $315 price target, signaling continued confidence in the chipmaker’s long-term AI infrastructure opportunity. Analyst Aaron Rakers argued that Nvidia is increasingly positioning itself as more than a semiconductor supplier, expanding its role across the broader AI infrastructure ecosystem through financing platforms and AI factory optimization. Moreover, Bank of America maintained its “Buy” rating and $350 price objective on Nvidia, continuing to identify the stock as its top semiconductor sector pick. The firm’s bullish stance reflects confidence in Nvidia’s dominant position in AI infrastructure and the continued strength of demand for its data-center products. Overall, NVDA has a consensus “Strong Buy” rating . Of the 47 analysts covering the stock, 43 advise a “Strong Buy,” three suggest a “Moderate Buy,” and one offers a “Strong Sell” rating. The average analyst price target for NVDA is $304.32, indicating a potential upside of 35%. Also, the Street-high target price of $500 suggests that the stock could rally as much as 121.9%. www.barchart.com www.barchart.com On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here .