Nvidia (NVDA) remains the dominant force in AI computing — becoming the first company to reach a market capitalization of $5 trillion — as it transforms from a chipmaker into the essential platform powering the global shift toward accelerated computing and generative AI. The company’s new Blackwell architecture is driving a fresh product cycle, supported by expanding partnerships with major hyperscalers and rapid adoption of Spectrum-X networking, which extends NVDA’s influence across the entire data center stack. With management guiding to another record quarter and visibility into a $2T+ AI infrastructure opportunity, NVDA continues to combine exceptional growth, profitability and execution at a valuation that remains attractive relative to its earnings trajectory. Trade timing & outlook NVDA’s breakout above its prior $200 ceiling completes a three-month consolidation pattern, signaling continuation of its multi-quarter uptrend. Relative strength remains a key tailwind, with NVDA leading both the semiconductor sector and S & P 500, suggesting upside towards our $235 target. Fundamentals At roughly 31x forward earnings, NVDA trades modestly above the industry average of 26x but with far superior growth — consensus expects 37% EPS growth and 36% revenue growth, more than triple sector peers. With net margins exceeding 52%, NVDA’s profitability is unmatched among large-cap technology firms and reflects its scale advantage and vertical integration across hardware, networking, and software. Bullish thesis Record growth cycle: Q2 FY26 revenue grew 56% YoY to $46.7B, and guidance for Q3 at $54B signals sustained acceleration. Blackwell ramp: Strong demand for GB200 systems, up 17% sequentially, positions the new architecture as the key driver of 2026 growth. Ecosystem expansion: Spectrum-X networking wins with Meta and Oracle broaden NVDA’s reach beyond GPUs into AI infrastructure. Operational agility: The company effectively reallocated supply amid China export restrictions, preserving top-line momentum. Secular AI demand: With hyperscalers, governments, and enterprises all investing in AI compute, NVDA remains the defining beneficiary of the multi-year AI buildout. Options trade With an IV Rank of 40%, options premiums are moderately priced, offering attractive risk/reward through defined-risk debit spreads. I’m buying the Dec 19, 2025 $200/$235 Call Vertical @ $11 Debit. This entails: Buying the Dec 19, 2025 $200 call @ $14.90 Selling the Dec 19, 2025 $235 call @ $3.90 The maximum reward is $2,400 per contract if NVDA is above $235 at expiration. The maximum risk is $1,100 per contract if NVDA is below $200 at expiration. The breakeven point for this trade is $211. View this Trade with Updated Prices at OptionsPlay Summary NVDA’s breakout confirms renewed leadership in both AI infrastructure and networking, margin expansion, and visibility into another record-setting quarter. With the Blackwell cycle ramping, networking attach broadening, and trade headwinds proving manageable, NVDA remains one of the market’s clearest high-conviction plays on the continued acceleration of AI-driven compute demand. DISCLOSURES: Zhang has a position in NVDA. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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The Japanese auto giant Toyota Motor has denied Donald Trump’s suggestion that it is poised to invest more than $10bn in the United States over the coming years.
On a visit to Japan earlier this week, the US president claimed he had been told that the carmaker was going to be setting up factories “all over” the US “to the tune of over $10bn”.
“Go out and buy a Toyota,” added Trump.
But a senior executive at Toyota – the world’s largest automaker – said that no such explicit promise of investment at that level had been made, although Toyota plans to invest and create new jobs in the US.
The firm held talks with Japanese and American officials ahead of Trump’s visit.
“During the first Trump administration, I think the figure was roughly around $10bn, so while we didn’t say the same scale, we did explain that we’ll keep investing and providing employment as before,” Hiroyuki Ueda told reporters, on the sidelines of the Japan Mobility Show in Tokyo. “So, probably because of that context, the figure of about $10bn came up.”
Toyota “didn’t specifically say that we’ll invest $10bn over the next few years”, Ueda said, adding that the topic of investment did not come up when Akio Toyoda, the firm’s chairman, spoke with Trump at a US Embassy event on Tuesday.
Trump met with Japan’s new prime minister and first female premier, Sanae Takaichi, on Tuesday. He welcomed Takaichi’s pledge to accelerate a military buildup, while also signing deals on trade and rare earths.
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During the visit, Takaichi pledged to realise a “golden age” in relations with the US and to “fundamentally reinforce” her country’s defense posture. The two leaders signed an agreement laying out a framework to secure the mining and processing of rare earths and other minerals.
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