Nvidia Opens Up to the World

A milestone was the introduction of NVLink Fusion technology, through which partners will be able to use central processors from other companies alongside the giant’s products. This step is significant because this process was until now exclusive only to Nvidia. It thus provides opportunities for customers and partners across the entire AI technology infrastructure, not just for chips, allowing greater compatibility and better customization. In this way, the company is expanding beyond the chip market and moving more towards AI solutions, where its biggest competitors are, for example, Microsoft and Amazon, who are also its clients. Companies like MediaTek, Marvell, and Cadence have already started using NVLink Fusion, while third-party graphics processors from Qualcomm and Fujitsu will be integrated into data centers within NVLink.[1]

Pushing the Boundaries of AI

Another innovation is the creation of a marketplace for cloud AI chips. The platform, called Lepton, is expected to join so-called neocloud companies like CoreWeave and Nebius Group, which rent out Nvidia processors to their customers in this way. With this move, the giant aims to simplify developers’ access to its products worldwide and avoid the lengthy manual search for available technology.[2] Nvidia also introduced a new generation of higher-performance Grace Blackwell chips, which are expected to be available on the market in the second half of this year. These are linked to the foundational model for reasoning and skills for humanoid robots, Isaac GR00T, while Nvidia also unveiled additional simulation technologies. Among the first companies using the GR00T model is AeiRobot, through which the robot ALICE4 learns natural language and manipulation in industrial environments more effectively.[3] Last but not least, collaborations with several companies in Taiwan should be mentioned, aiming to build personal supercomputers[4] for researchers and scientists, along with a potential investment in the company PsiQuantum[5], through which Nvidia will, for the first time, finance the construction of a physical quantum computer.

Partnerships in the Middle East

A significant boost for the company came from Donald Trump’s recent visit to Saudi Arabia, during which he successfully negotiated deals worth a total of $600 billion. The largest share of this deal goes to Nvidia, which will supply the kingdom with hundreds of thousands of advanced semiconductors. The first shipment, consisting of 18,000 Blackwell chips, will be delivered to the startup Humain, which operates under the Saudi Public Investment Fund (PIF). As part of the agreement, companies like AMD and Qualcomm will also sell their products to Saudi Arabia, while the United States is set to receive a $20 billion investment from the Saudi firm DataVolt.[6] During his trip around the Persian Gulf, Trump also visited the United Arab Emirates, resulting in a deal that grants the UAE access to advanced chips as well. Although official details have yet to be released, a Reuters source reported that from this year onward, around half a million Nvidia chips are expected to be imported annually into the country. This agreement is crucial for the UAE, which aims to become a technology leader, though there are concerns that the technology might eventually be transferred further to China.[7]

Stock Correction Amid Strong Earnings

The artificial intelligence market has been tensed over the past few months, with high stakes on return on investments. The sector has also been impacted by tariffs imposed by Donald Trump. As a result, Nvidia’s stock performance on the NASDAQ shows a correction this year, with its value dropping below $95 at the beginning of April. By May 20, 2025, the stock price recovered to $135.57, reducing the year-to-date loss to less than 2%. Despite recent declines, Nvidia’s shares have posted a gain of over 27% over the past year and an impressive 1,327% growth over the past five years.*

Nvidia Stock Price Development Over the Past 5 Years (Source: Investing.com)*

Regarding financial results, Nvidia once again exceeded analyst expectations in the most recent quarter of 2025. Revenues during the period reached $39.33 billion, surpassing LSEG estimates by $1.28 billion. Earnings per share amounted to $0.89, with a net profit of $22.09 billion. Sales of Nvidia’s most advanced chips, the Blackwell series, generated $11 billion in revenue—what CFO Colette Kress described to CNBC as “the fastest product ramp in company history.” The company owes this growth largely to cloud service giants, which accounted for 50% of total revenues. For the first quarter, revenues are expected to reach approximately $43 billion, representing a 65% year-over-year increase. However, this growth rate is more moderate compared to the remarkable 260% surge seen last year.

Nvidia continues to anticipate that its historical growth trend will persist throughout the year. According to Colette Kress, this will be driven by a significant increase in Blackwell chip sales.[8] Further growth could also be supported by announced innovations, strategic partnerships, and the ongoing boom in artificial intelligence with its expanding integration across industries.[1]

* Past performance is not indicative of future results.

[1] Forward-looking statements are based on assumptions and current expectations that may prove inaccurate or be affected by changes in economic conditions. Such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.

[1] https://www.cnbc.com/2025/05/19/nvidia-announces-new-tech-to-keep-it-at-the-center-of-ai-development-.html?qsearchterm=nvidia

[2] https://finance.yahoo.com/news/nvidia-software-aims-create-marketplace-060636439.html

[3] https://www.investing.com/news/press-releases/nvidia-powers-humanoid-robot-industry-with-cloudtorobot-computing-platforms-for-physical-ai-93CH-4051791

[4] https://www.investing.com/news/press-releases/nvidia-launches-aifirst-dgx-personal-computing-systems-with-global-computer-makers-93CH-4051786

[5] https://www.investing.com/news/stock-market-news/nvidia-in-talks-toenter-quantum-sector-via-psiquantum-investment-the-information-4051759

[6] https://www.reuters.com/world/middle-east/saudi-arabia-partners-with-nvidia-spur-ai-goals-trump-visits-2025-05-13/

[7] https://www.theguardian.com/us-news/2025/may/15/trump-artificial-intelligence-uae

[8] https://www.cnbc.com/2025/02/26/nvidia-nvda-earnings-report-q4-2025.html