Arete Research Adjusts Price Target on Nvidia to $369 From $283

Nvidia released three new models in its Nemotron family, including the 120 billion-parameter Super VL and two Bolt models for edge deployment. The models aim to improve efficiency and accuracy for AI agents, with Super VL achieving high accuracy at a lower parameter count. Bolt models are optimized for Nvidia hardware. The models are available immediately or by late October, with several organizations already customizing them for specific use cases.

Microsoft (MSFT) plans to expand its custom Maia chips in Azure data centers, reducing reliance on Nvidia (NVDA) GPUs. CEO Satya Nadella stated Maia will be the primary inference system for Microsoft's products. Marvell Technology (MRVL), Microsoft's chip partner, could see significant revenue growth. Microsoft's $175B data center spending may benefit Marvell, which aims to grow revenue tenfold in five years.

Mercedes-Benz and Nvidia extended their partnership to develop next-gen automated driving systems, combining Mercedes' automotive expertise and MB.OS with Nvidia's technology. The collaboration aims to advance safety and innovation in automated driving.

Mercedes-Benz is expanding its partnership with NVIDIA to use its full autonomous-driving stack across its MB.OS platform. The collaboration targets Level 4 autonomous vehicles and includes NVIDIA's compute architecture, driving software, and safety layer. This follows a similar deal with Volvo, indicating NVIDIA's push to become the default compute standard in the automotive industry.

CoreWeave (CRWV) shares rose 6% to $69.69 after Nvidia CEO Jensen Huang reassured investors about its financial strength, reversing a 17% intraday loss. CoreWeave reported a $626M net loss in Q2 despite revenue doubling to $2.6B, with significant interest expenses and capital expenditures. The company has a $104B revenue backlog, but financing costs remain a focus.

NVIDIA (NVDA) reported Q2 net income of $59.69B and operating cash flow of $24.08B. The company agreed to a $6.3B contract with CoreWeave and expanded its partnership with Adobe. NVDA shares fell ~3%. Analysts noted concerns about AI funding and higher financing costs.