Nvidia's Ethernet Coup and Vera-Rubin Ambition: Why the Market Isn't Biting Just Yet
Published on 06/25/2026 at 10:13 | Redaktion boerse-global.de
Jensen Huang is no longer content to simply sell chips. The Nvidia chief executive recasts data centres as industrial plants for artificial intelligence â tokens as output, GPUs as the machinery. It's a vision that has pushed the company deep into network gear and next-generation processors. Yet for all the grand talk, the stock has been drifting lower, caught between a transformative product cycle and tangible near-term headwinds.
The most concrete evidence of Nvidia's expanding footprint came from the Ethernet switch market. According to IDC, Nvidia captured a 21% share of that segment in the first quarter of 2026, with revenue surging 193% to $2.1bn. The numbers underline a strategic shift: Nvidia sells its networking products as part of a bundled "AI factory" package that includes InfiniBand, data processors and cables, locking customers into its ecosystem rather than leaving them to assemble components from different vendors.
The latest architectural leap was unveiled at the shareholder meeting on 24 June. The Vera-Rubin platform, already in production, is said to deliver 35 times more inference performance than its predecessor Blackwell. Management estimates that Blackwell and Rubin together could generate up to $1tn in cumulative revenue between 2026 and 2027. That is not a quarterly forecast but a bet on a structural transformation â one supported by a CUDA ecosystem that now serves more than 7,000 applications and by hyperscaler spending that Amazon, Alphabet, Microsoft, Meta and Oracle are expected to push to roughly $795bn in 2026.
Should investors sell immediately? Or is it worth buying Nvidia?
And yet the share price has not reflected the optimism. Nvidia's stock closed at âŹ175.34, down about 13% from the 52-week high of âŹ202.50 hit in May. The past 30 days alone have seen a decline of roughly 5%. At around âŹ177 as of Thursday, the shares have barely budged after the company announced at the meeting that it would raise its quarterly dividend 25-fold and launch an $80bn share buyback programme â committing to return at least half of its free cash flow to shareholders.
What is holding the stock back? A confluence of concerns. Reports of a potential slowdown in HBM production at key partner SK Hynix have unsettled investors. Meanwhile, rental prices for Blackwell computing capacity have dropped from $6.11 to $4.22 per hour, a sign that short-term supply of Nvidia's latest gear is outpacing demand. Export controls and an ongoing copyright lawsuit add to the uncertainty. The relative strength index sits at 44, firmly in neutral territory and well below the overbought levels of early 2025.
Technically, the stock remains above its 200-day moving average of âŹ163.44, a critical support level. But it also trades about 3% below the 50-day average of âŹ181.01, suggesting consolidation rather than capitulation. Analysts still see room for a recovery: the median price target stands at âŹ263.84, implying upside of more than 50% from current levels. That target hinges on the AI-factory thesis playing out â that token generation becomes a mass-market commodity, that governments and pharmaceutical companies build their own AI infrastructure, and that Nvidia maintains its central role.
The ultimate question is not whether artificial intelligence continues to grow. It is how quickly the massive infrastructure investments by hyperscalers translate into Nvidia's reported numbers â and whether the supply chain can keep pace. The next quarterly results, due in August, will provide the first real answer. For now, Huang's billion-dollar signals on dividends and buybacks show a management confident in its own earnings power, even as the market waits for proof.
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