Why Nvidia Is Making a $3.5 Billion Bet on Taiwan-Based MediaTek

Nscale, a British AI cloud computing firm, is negotiating to raise up to $3.5B ahead of a U.S. IPO. Nvidia (NVDA) is expected to supply $2B of that financing, making it a major shareholder. Nscale has a $45B contract with Anthropic, which Microsoft and Google previously considered but declined. Nscale's backlog doubled to $103B, largely due to the Anthropic deal. The company was valued at $14.6B in March and aims for a $30B valuation in the new round.

Nvidia (NVDA) reported a 106% year-over-year revenue increase to $96.2B, with EPS up 128%. Despite this, its stock trades at 24.2x forward earnings. The company expects 70% revenue growth in fiscal 2028, but market concerns linger about the durability of AI-driven demand and potential competition.

Nvidia (NVDA) is acquiring Hugging Face for $13 billion. Hugging Face is a platform for AI models, helping developers use models and hardware from various companies. Nvidia aims to increase AI usage, benefiting from its chip sales. Hugging Face has 18 million users and aims for 100 million. Nvidia's strategy aligns with the Jevons paradox, where increased efficiency drives higher demand. Nvidia's role in Hugging Face's neutrality and potential access to customer data remain unanswered.

Nvidia's CFO Colette Kress reported 'extreme pricing conditions in memory,' expecting further increases. Nvidia's gross margin was 75% last quarter, with guidance for 71-73% in coming periods. The company attributes the shortage to AI-driven demand, affecting its costs and pricing.

Nvidia (NVDA) agreed to acquire AI developer platform Hugging Face for $12.9 billion, expanding beyond hardware. Analyst Rajvindra Gill reiterated a Buy rating with a $300 price target. The deal is seen as a strategic move to maintain market share against Broadcom's (AVGO) custom silicon threat, though Nvidia pledges to keep Hugging Face open to competitors. Broadcom raised its AI chip revenue forecast to $230 billion by fiscal 2028, but faces competition from Google's TPUs.

Nvidia acquires AI software platform Hugging Face for $13 billion, keeping it open-source. A judge orders Google to modify its digital ads business but avoids a breakup. NYC bans AI for students through 8th grade. EPA proposes reducing public notification for data center permits. Scams in the U.S. reach record highs, with limited victim recourse.