Key Highlights
- NVDA shares climbed over 10% throughout the week, finishing at $223.96 on Friday’s close
- SpaceX revealed plans to construct both terrestrial and orbital data centers powered exclusively by Nvidia processors
- Reports suggest Nvidia may be exploring lower HBM memory configurations for its forthcoming Rubin Ultra chip amid supply constraints
- AMD shares initially fell approximately 8% post-earnings despite surpassing Q2 projections, recovering to close the week nearly 2% higher
- Wall Street maintains a “Buy” consensus on NVDA with an average analyst target of $304.26
Nvidia shares wrapped up Friday’s session at $223.96, marking a weekly advance exceeding 10%. The Philadelphia Semiconductor Index similarly demonstrated strength, posting gains above 8% during the five-day trading period.
This recovery arrives after semiconductor stocks endured pressure from concerns surrounding AI stock valuations and whether underlying business fundamentals justified elevated prices. Market sentiment experienced a notable shift this week as those anxieties diminished.
The primary driver emerged from SpaceX. During the aerospace company’s inaugural earnings call held Tuesday, CEO Elon Musk revealed SpaceX’s commitment to deploying data centers utilizing Nvidia processors exclusively, both terrestrially and in orbital environments.
According to Musk, SpaceX intends to implement Nvidia’s Vera Rubin-based NVL72 rackscale architecture for earth-based facilities, while adapted configurations of these systems will be deployed to space-based installations.
Memory Configuration Adjustments for Rubin Ultra
However, not all developments were positive. A Thursday report from The Information indicated Nvidia may be contemplating reductions to high-bandwidth memory capacity in its forthcoming Rubin Ultra processor.
Initial expectations called for Rubin Ultra to incorporate 1TB of HBM. According to the report, Nvidia is currently evaluating configurations featuring 192GB and 256GB capacities, representing a decrease from the 288GB implemented in the present flagship Rubin processor. Industry-wide memory supply constraints were identified as the driving factor.
Nevertheless, NVDA shares maintained their weekly momentum despite this development.
Regarding institutional movements, Steelhead Wealth Management acquired 3,856 NVDA shares during the first quarter, representing approximately $672,000 in value. Institutional ownership currently comprises 65.27% of outstanding shares.
Nvidia’s most recent quarterly report, published May 20, delivered earnings per share of $1.87, exceeding analyst expectations of $1.76. Revenue totaled $81.61 billion, surpassing the $78.42 billion projection and representing an 85.2% year-over-year increase.
Management additionally authorized an $80 billion stock repurchase program and increased the quarterly dividend to $0.25 per share from the previous $0.01.
AMD Performance Update
AMD experienced a more turbulent week in comparison. Despite exceeding Q2 forecasts and providing optimistic Q3 guidance, shareholders demanded stronger results, driving shares down approximately 8% following the earnings announcement.
AMD subsequently rebounded, concluding the week with gains just below 2%.
Over the trailing twelve months, AMD has actually delivered returns of 180%, substantially outperforming Nvidia’s 28% appreciation. AMD’s processor division and its anticipated Helios rackscale platform, designed to compete directly with Nvidia’s NVL72, have fueled this performance.
AMD also expanded its AI inference capabilities through the acquisition of startup Taalas. Industry analysts observed the transaction doesn’t immediately narrow the competitive distance with Nvidia.
On the analyst circuit, Wedbush elevated its NVDA price objective from $300 to $330 while maintaining an outperform rating. Wells Fargo reaffirmed its overweight stance with a $315 target. The Street consensus target currently stands at $304.26, supported by 48 buy ratings, 3 strong buy recommendations, and 2 hold ratings.
Insider transactions skewed toward dispositions, with 45 insider sales and zero purchases documented over the previous six months. Board member Mark A. Stevens divested 885,000 shares at an average price of $210.17 during June.
NVDA’s 52-week trading range extends from $164.07 to a peak of $236.54.
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