On Two Continents: Nvidia’s Jensen Huang Locks Down Chips and Ramps Up AI R&D
26.05.2026 - 22:21:30 | boerse-global.de
The market’s reaction to Nvidia’s record-breaking quarter has been anything but euphoric. Shares trade at €183.98 in Frankfurt, down 2.6% on the day and roughly 7.4% below the all-time high hit in May—despite revenue surging 85% to $81.6 billion and a fresh $80 billion buyback authorization. The tension is clear: Wall Street is impressed, but execution risk looms larger than ever.
A Two-Front Strategy Takes Shape
CEO Jensen Huang is hedging that risk on two continents. In Taipei, he sat down with TSMC chief C.C. Wei to secure advanced packaging and foundry capacity for the upcoming Vera Rubin platform—a system that combines a new Vera CPU with a Rubin GPU across six chips. Without sufficient supply from Taiwan, Nvidia’s own guidance of roughly $91 billion in the current quarter becomes an operational mountain.
Simultaneously, Nvidia is planting deep roots in Israel. The company has signed a ten-year lease for an 11-story building in Yokneam’s Ofer Park, adding 29,000 square meters at a cost of about 230 million shekels. That brings its total footprint in the park to 67,000 square meters. A new headquarters on a 160,000-square-meter plot in Kiryat Tivon is also under development. These moves build on the 2019 acquisition of Mellanox for $6.9 billion, which turned Israel into a critical networking and R&D hub.
The Vera CPU Bet and the China Factor
Nvidia remains synonymous with graphics processors, but Vera signals a push into the $200 billion CPU market. The Vera chip targets “agentic AI”—systems that can plan and execute tasks autonomously—and is designed to work cheek-by-jowl with Nvidia’s GPUs in data centers. Huang argues that flexible GPU architectures will dominate because niche SRAM-based inference accelerators like LPX lack the throughput for more than 20% of AI workloads.
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China adds another layer of complexity. Nvidia explicitly includes the Chinese market in that $200 billion addressable opportunity, betting that ARM-based CPU designs could dodge some export restrictions that have already crushed its data-center compute sales in the region. Regulatory hurdles remain high, but the demand is unmistakable.
Record Numbers That Fail to Ignite
The first-quarter fiscal 2027 results were almost comically strong. Data-center revenue alone hit $75.2 billion, up 92% year over year. The new ACIE segment—covering AI cloud, industrial, and enterprise customers—now accounts for half of that figure and grew 31% sequentially, outpacing the hyperscale business. That diversification matters as Amazon, Google, and Microsoft develop their own chips.
Nvidia’s balance sheet is equally muscular: $95.2 billion in outstanding delivery commitments underpin the outlook, and the board has cleared an additional $80 billion for share buybacks. The quarterly dividend climbs to $0.25 per share, payable June 26.
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Yet the stock is stuck in a tight range. It sits about 8.5% above its 50-day moving average and 14.9% above the 200-day line, but 8.5% off its recent high. Technicians peg the key resistance at roughly $221; only a confirmed breakout would generate fresh momentum.
Analysts Hold Firm, Await Vera
Despite the sideways price action, the analyst community is overwhelmingly bullish. Rothschild & Co Redburn reiterates a buy with a $300 target, and 48 analysts rate the stock a buy. The common thread is Vera Rubin, slated for production in the second half of 2026. Huang’s ability to lock in TSMC capacity and bring that platform to market on time will determine whether the $91 billion forecast becomes a floor or a ceiling. For now, the market is watching both Taipei and Tel Aviv—and waiting.
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