Hive lines up $129 million to buy Nvidia AI chips

Melius Research analyst Ben Reitzes cut Nvidia's (NVDA) price target by 25% to $315 but maintained a Buy rating, citing financing risks for AI infrastructure. Intel (INTC) saw a 29% drop after missing revenue expectations, impacting the broader semiconductor sector. Nvidia's stock is down 15% from its October high despite strong demand.

Steve Weiss on CNBC said Democratic midterm wins may limit AI infrastructure spending, particularly in Texas. Texas' new governor-elect, Gina Hinojosa, campaigned on a data center moratorium. Vistra (VST) and Vertiv (VRT) shares fell over 10%, while NVIDIA (NVDA) and Broadcom (AVGO) dropped less. Analysts debate the impact of policy changes on data center projects and AI suppliers.

AMD reported Q3 2026 revenues of $13.38B, up 44.7%, with net income rising 95.3% to $2.43B. Data Center group revenues grew 96.9% to $8.55B, while Client and Gaming groups saw slower growth. AMD's cash reserves doubled to $15.78B. The company faces supply constraints in HBM memory, limiting its competition with Nvidia in datacenter GPUs, but is profitable in its core markets.

Nvidia (NVDA) shares fell 1.35% to $203.90 in premarket trading on November 4, as investors assessed its $108 billion quarterly revenue target. The company's Q2 revenue was $96.2 billion with a 75% non-GAAP gross margin. Q3 outlook projects a 12.3% revenue increase and a slight margin decline. Analysts highlight the challenge of maintaining profitability during product transitions.

Hugging Face CEO Clément Delangue stated that AI risks stem from large companies developing models in secret, not open-source platforms. He mentioned a past attack by OpenAI's agents and emphasized the need for legal responsibility in AI-driven cyberattacks. Delangue's 'P(doom)' for AI existential risk is 'close to zero.' Hugging Face, with over 20 million users, was acquired by Nvidia for $12.93 billion in September.

Chinese firms, including Alibaba, ordered 6M NVIDIA RTX Pro 5500 chips worth $70B, but expect only 1% delivery in 4 months. NVIDIA prioritizes advanced chips, leaving China with limited supply. Analysts project $692B revenue by 2028, with minimal China contribution. NVIDIA trades at 17x forward earnings, lowest in 3 years, with earnings report due Nov. 17.