Nvidia Targets 2.5 Times Current Substrate Capacity Over Three Years

Nvidia, AMD, and Broadcom agreed to invest $5 billion in Meta's $25 billion stock sale. Analysts question the circular financing, where chipmakers invest in a company that buys their products. Meta's capital needs and AI infrastructure spending are under scrutiny. S&P Global revised Meta's outlook to negative, citing cash flow concerns and high capital expenditure.

Naver's shares fell to historic lows despite a $1 billion investment from Nvidia, becoming its third-largest shareholder. The stock initially rose 4.13% after-hours but dropped further in regular trading. Weak earnings and AI competition concerns weigh on the share price, with brokerages setting target prices and issuing strong buy calls. Investors remain pessimistic, and market dynamics may hinder recovery.

U.S. stocks fell, with the Nasdaq down 2.9%, as Intel and Amazon's earnings raised concerns about AI spending. Intel's stock dropped 28.6%, while Nvidia and AMD also declined. The S&P 500 and Nasdaq saw monthly losses, though the Dow ended October positively. Earnings season shows 82% of S&P 500 companies beating forecasts, with 31.6% expected YoY growth.

Vertiv (VRT) shares rose 16% after Q3 organic orders doubled and it raised its 2026 sales outlook by $650M. Sales increased 61% to $4.31B, beating guidance. CEO Albertazzi cited accelerating data center infrastructure demand. The stock trades at 26x forward earnings, below its 3-year average.

Nvidia reduced memory and interconnect bandwidth targets for its Vera Rubin AI hardware, with HBM4 bandwidth dropping 13% to 19.2 TB/s and NVLink 6 bandwidth falling 16.7% to 3 TB/s. The changes affect all configurations, including the 72-GPU rack. Nvidia stated the original figures were preliminary targets, and the new specs reflect production capabilities.

The US Justice Department is investigating Nvidia's $12.93B acquisition of Hugging Face, announced in September 2026, over concerns about market dominance in AI model distribution. The deal, expected to close in early 2027, involves a platform hosting 3M+ models and 500K datasets, with 18M developers and 200K+ customers. Nvidia faces scrutiny over potential competitive advantages and tied-selling allegations, while it pledges to keep the platform open to rivals.