GPU & Merchant Accelerators

Nvidia is in early-stage discussions to acquire or increase its investment in Reflection AI, a U.S. startup focused on developing open-weight models, the Financial Times reported, citing people familiar with the discussions. The structure of a potential deal could take several forms, including a so-called acqui-hire that would let Nvidia hire staff and license technology while avoiding antitrust scrutiny tied to a full acquisition, and deal terms currently under discussion were not available. Nvidia, the world's most valuable company, has already invested $800M into Reflection, which was last valued at $25B in a March funding round. Nvidia, whose CEO Jensen Huang has in the past called for an open-weight ecosystem for AI, could also make an additional equity investment in Reflection or reach an agreement to supply more chips or computing power to the company. Multiple people with knowledge of the matter said a deal could be reached in the coming weeks, while cautioning that the companies could also walk away from the talks; Nvidia and Reflection did not respond to the Financial Times' requests for comment.

Nvidia is set to invest in d-Matrix, a maker of artificial intelligence server chips, The Information reported, citing three people with knowledge of the deal. The investment is part of Nvidia's initiative to make its technology and chips compatible with those of other designers, the outlet added. Nvidia has struck similar deals with Marvell Technology, Intel, and Amazon, among others. Nvidia did not immediately respond to a request for comment from Seeking Alpha.

Tianyang Technology announced before market open today via its official WeChat account that it has signed a GPU Procurement Agreement with Company X to purchase 20,000 NVIDIA RTX PRO 5500 Blackwell units. Boosted by the news, the company's closing price that day was 16.16 yuan per share, up 12.38% from the previous trading day. A Cailian Press reporter interviewed multiple industry insiders and learned that the NVIDIA RTX PRO 5500 Blackwell has not yet officially gone on sale, and its official pricing has not been determined. The domestic quote for this GPU may exceed 100,000 yuan per unit. Based on a purchase volume of 20,000 units, the aforementioned agreement could be worth more than 2 billion yuan, but practitioners bluntly said the order has barely begun to take shape, and getting the goods is estimated to happen no earlier than the first quarter of next year. Xia Hailong, a lawyer at Shanghai Shenlun Law Firm, said a preliminary estimate puts the order amount at potentially several billion yuan. If it reaches the financial threshold requiring disclosure, it should be disclosed through statutory channels in accordance with the law, and publishing it only through a WeChat official account is clearly non-compliant. A representative from Tianyang Technology's securities department responded that specific details are inconvenient to disclose, and if the relevant disclosure threshold is met, there will be subsequent disclosure. Previously, Tianyang Technology had already disclosed large-scale computing power projects, including a project cooperation agreement signed in May with Qiming Xinghan and others for an overall computing power procurement scale in the range of 3.5 billion to 4 billion yuan, a joint venture established in June with Capital Online with a capital contribution of 70 million yuan for a 70% stake, and a Computing Power Cloud Service Agreement signed with Yunli Zhihui with a total tax-inclusive amount of 303 million yuan, which was raised to 402 million yuan in July. The semi-annual report shows that as of the end of June this year, the company's fixed assets were approximately 275 million yuan. The two major contracts with Qiming Xinghan and Yunli Zhihui recorded zero sales revenue recognized in the current period and cumulatively. In the first half of the year, non-GAAP net profit was negative 6.9296 million yuan, turning to a loss year-on-year. Net cash flow from operating activities was approximately negative 341 million yuan. Monetary funds were approximately 508 million yuan, and short-term borrowings were approximately 615 million yuan.

Two former Groq engineers have sued in Delaware, alleging Groq's board improperly structured the 2025 transaction through which Nvidia acquired the company's AI technology. The deal consisted of a $17 billion licensing agreement plus a separate $3 billion Nvidia stock bonus pool for engineers who joined the chipmaker, and the plaintiffs argue the arrangement transferred Groq's core technology and much of its engineering talent without treating it as a conventional acquisition; Groq has called the lawsuit meritless. Nvidia said Groq 3 LPX, its first rack-scale LPU system combining Nvidia's high-throughput architecture with Groq's high-interactivity technology, is already in full production with volume shipments expected later this quarter, and the company said the system achieved 3,400 output tokens per second in an Artificial Analysis benchmark, four times faster responsiveness than the nearest alternative platform. Groq technology is also part of Nvidia's broader Vera Rubin platform, where management estimates revenue opportunity per gigawatt has expanded from roughly $18 billion with Hopper to $25 billion with Blackwell and $40 billion with Vera Rubin. Separately, the U.S. Department of Justice was reportedly probing Nvidia's Groq transaction, and FTC Chair Andrew Ferguson has said the agency would examine deal structures potentially designed to escape conventional merger review. Nvidia generated $96 billion of revenue in fiscal Q2 2027, more than double the prior-year level, with Data Center revenue of $89 billion, and management expects approximately 70% revenue growth in fiscal 2028 on a supply-constrained outlook; the stock traded at 24.88 times forward P/E as of October 6, with consensus calling for EPS growth of 95.23% in fiscal 2027 and 69.66% in fiscal 2028.

President Trump bought up to $1.6 million worth of shares in semiconductor giant Nvidia in August and subsequently sold up to $1 million worth, according to an asset disclosure report released on the 8th. According to the report, the Nvidia trades were among hundreds of transactions Trump made in August. In a statement to Reuters, White House press secretary Ingle said the president's portfolio is managed independently by a third-party financial institution, adding that "all investment decisions are made entirely by independent managers" and that "there is no conflict of interest whatsoever." The Trump administration is considering policies that could affect Nvidia's business, including easing export restrictions on the company's advanced semiconductors. Trump is also expected to award the National Medal of Science, which honors achievements in the sciences, to Nvidia CEO Jensen Huang and others the same day.

Advanced Micro Devices has agreed to acquire World Labs in an all-stock deal valued at $8.2 billion, announced September 28, as the chipmaker pushes deeper into physical AI. World Labs develops AI models that simulate three-dimensional environments, with potential applications in robotics, autonomous machines and industrial simulation, while AMD supplies the CPUs, GPUs and networking infrastructure behind such workloads. AMD has not disclosed World Labs' expected near-term revenue contribution, and because the transaction is all-stock, current AMD investors will face dilution. The deal adds to AMD's challenge to Nvidia's dominance in AI computing and could expand its addressable AI market beyond generative-AI infrastructure, though the company will compete for share in a crowded field. AMD reported second-quarter revenue up 50% year over year to $11.54 billion, with non-GAAP operating income up 245% to $3.09 billion and earnings per share up 246% to $1.66, while Wall Street consensus points to roughly $50.9 billion in 2026 revenue and $7.58 in 2026 earnings per share.

Citi analyst Atif Malik raised his price target on AMD to $800 from $575 on Tuesday, citing the release of Meta Muse and a subsequent raise to his CPU total addressable market model. Malik said AMD will be the primary beneficiary of the CPU renaissance and that Meta is one of the largest customers of AMD's server business, with the CPU TAM expanding from $29 billion in 2025 to $300 billion in 2030, a 60% CAGR, while Intel is seen as a secondary beneficiary. The call follows a run of bullish catalysts for AMD, including an agreement two weeks ago to acquire World Labs, a San Francisco-based AI model lab led by Dr. Fei-Fei Li, for $8.2 billion, a deal expected to close by the end of 2026. AMD beat Wall Street expectations across the board for the second quarter in early August, posting record non-GAAP earnings per share of $1.66 versus consensus estimates of $1.61, with total revenue up 50% year over year to a record $11.5 billion, clearing analyst projections of approximately $11.34 billion. The company's Data Center segment revenue more than doubled year over year to $6.7 billion, and AMD projected second-half 2026 server CPU revenue to grow 80% year over year and 70% in 2027, with data center revenue more than doubling in 2027 and AI GPU revenue growing well over 100%.

Advanced Micro Devices could extend its earnings-beat streak when it reports next, with a positive Zacks Earnings ESP of +1.35% and a Zacks Rank #3 (Hold) pointing to another possible surprise. The chipmaker has topped estimates in each of its last two quarters, with an average surprise of 4.25%. In its most recent report, Advanced Micro posted earnings of $1.66 per share against the Zacks Consensus Estimate of $1.61, a surprise of 3.11%. The prior quarter brought earnings of $1.37 per share versus an expected $1.3, a surprise of 5.38%. Zacks research shows stocks combining a positive Earnings ESP with a Zacks Rank #3 or better produce a positive surprise nearly 70% of the time.

NVIDIA is carrying $279 billion in supply and capacity commitments, up from $119 billion at the prior quarter-end, a schedule that now hinges on whether customer spending keeps pace. The filing allocates $92 billion of those commitments to the remainder of fiscal 2027, $87 billion to fiscal 2028 and $88 billion to fiscal 2029, with smaller amounts afterward, and NVIDIA said it may cancel, reschedule or adjust some agreements before firm orders. NVIDIA also disclosed August guarantees capped at $105 billion for an OpenAI-related SB Energy buildout, which generally begin as the relevant leases commence, with the first construction phase expected in fiscal 2029 and payments dependent on specified tenant defaults. Inventory rose to $31.58 billion from $21.40 billion at the fiscal year-end, while accounts receivable increased to $63.06 billion from $38.47 billion, and some investment-grade customers have payment terms from 90 days to one year. NVIDIA generated $96.22 billion of second-quarter revenue and $63.73 billion of operating income, an operating margin of about 66%, and management guided to $108 billion of next-quarter revenue, plus or minus 2%, excluding China data-center compute sales. At September 30's $228.38 close, NVIDIA's equity was worth about $5.51 trillion, and its trailing free cash flow of roughly $127 billion implies a cash yield of about 2.3%.