Nvidia's $3.5 Billion MediaTek Stake and 2-Gigawatt Australia Push Collide With a Market That Won't Cheer
Published on 09/10/2026 at 12:01 | Editorial boerse-global.de
Nvidia spent the past week doing what it does best: expanding. A $3.5 billion convertible bond investment in MediaTek, unveiled by CEO Jensen Huang and his counterpart Rick Tsai, ranks as the chipmaker's largest direct investment ever made outside the United States. By Wednesday, a second front had opened — a partnership with eight Australian firms to build up to two gigawatts of AI infrastructure capacity by 2027.
The market barely blinked.
A Stake That Buys More Than Equity
The MediaTek deal stretches across AI infrastructure, on-device computing and automotive applications. As part of the arrangement, MediaTek will adopt Nvidia's NVLink Fusion platform, letting customers design their own accelerator chips that plug into Nvidia's rack-scale AI factories. The RTX Spark and DGX Spark PC chip platforms fall under the same umbrella.
Australia's buildout rests on the new NVIDIA DSX platform, a modular toolkit that hands data center operators the blueprints for constructing AI factories. The initiative targets Australian startups, universities, research institutes and enterprises seeking domestic AI capacity. Among the partners: Firmus, Sharon AI, IREN, ResetData, Megaport, CDC, NEXTDC and AirTrunk. Sharon AI alone plans to install as many as 68,000 Nvidia GPUs.
The global push extends beyond Oceania. In Indonesia, Nvidia is driving a $3.1 billion project through partner Zankore.
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These moves slot into a broader pattern. Early in August, Nvidia outlined plans with financial heavyweights — Goldman Sachs, BlackRock, Blackstone, Apollo, Brookfield and KKR — to create independent financing vehicles capable of mobilizing more than $500 billion in third-party capital for AI infrastructure. Those arrangements remain subject to final contracts.
The Numbers That Should Silence Doubters
Nvidia's fiscal second-quarter revenue came in at $96.22 billion, up roughly 106% year over year and comfortably ahead of the $92.17 billion analyst consensus. Data centers accounted for $89 billion of that — over 92% of the total.
Guidance for the current quarter sits at approximately $108 billion, give or take two percentage points, and excludes any data center revenue from China. CFO Colette Kress doubled down on a 70% growth projection for fiscal 2028, well above the 44% analysts had modeled.
That kind of performance would normally leave little room for skepticism. Yet the share price tells a different story. The stock traded at EUR 192.40 on the prior day, down 0.9%, capping a week that saw a 2.1% decline. It sits 5% below its 52-week high of EUR 202.50, touched in mid-May. Another reading put the price at EUR 191.86 with a seven-day loss of 2.4% and a 5.3% gap to that same peak.
Why the Caution Isn't Irrational
Deepwater analyst Gene Munster framed the dilemma neatly this week: even with strong results, the market may stay jittery because overly optimistic guidance fuels overinvestment fears, while a modest raise gets read as growth normalization. Nvidia finds itself boxed in — almost any outcome gives skeptics room to interpret.
Customer concentration adds another layer. Research indicates that a substantial share of second-quarter revenue — measured through the end of July — came from just two unnamed major customers, a far larger proportion than a year earlier. A portfolio that top-heavy leaves Nvidia more exposed to demand swings from individual hyperscalers, however impressive the headline growth.
Regulatory scrutiny is mounting too. According to a New York Times report, the US Department of Justice is investigating Nvidia's licensing arrangement with AI chip startup Groq — a $17 billion deal that may have been structured to sidestep antitrust review. A formal request for information has already been issued. A fine is conceivable; unwinding the deal is considered unlikely. On its own, not catastrophic — but it fits a pattern of growing regulatory attention to Nvidia's market position.
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Supply Chain Costs Creep Higher
While analysts debate customer concentration and antitrust questions, the cost side of Nvidia's expansion is getting more expensive. The company is reportedly paying premiums to lock in test and probe card capacity from suppliers including FormFactor and King Yuan through 2027. Lead times for R&D probe cards have stretched from eight weeks to more than twenty.
Memory prices, according to one Freedom Capital analyst, are likely to stay elevated for years. That pressures margins even as the data center gross margin currently holds at 71% to 72%.
The Tension Beneath the Headlines
Strip away the noise and Nvidia's fundamental engine still looks formidable: revenue growth, demand expansion and a web of global partnerships that few companies can match. The MediaTek investment and the Australia buildout read as logical pieces of a strategy betting on sustained demand for AI compute.
What has changed is the audience. A year ago, the narrative was largely uncontested. Now customer concentration, a DOJ probe and rising supplier costs have introduced friction. Whether the momentum shows up in the share price depends on whether Nvidia delivers on its ambitious targets in the quarters ahead — and on whether a market that has started looking harder finds reasons to be convinced.
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