Nvidia Secures $2.1 Billion Stake in IREN as Cloud Deal and Software Push Reshape the AI Giant

Nvidia secures $3.4B cloud deal with IREN, stakes in Texas data centers, and launches Project Arc with ServiceNow ahead of May 20 earnings.

Nvidia is doubling down on its infrastructure strategy with a dual-pronged approach that blends hardware dominance with deeper software integration. The chipmaker has inked a $3.4 billion, five-year cloud agreement with IREN Limited, securing access to the operator's Texas data centers for internal AI workloads. But the deal goes further: Nvidia also obtained the right to purchase up to $2.1 billion in IREN equity, effectively buying a stake in the infrastructure that will house its next-generation chips.

The partnership targets a staggering buildout of up to five gigawatts of AI capacity, anchored by IREN's Sweetwater campus in Texas. That site is slated to become a flagship deployment for Nvidia's upcoming chip architecture, with CEO Jensen Huang stressing the need for seamless coordination between computing power, software, and energy supply. "AI factories require deep integration," Huang has said, framing the deal as a strategic necessity rather than a simple vendor relationship.

Desktop Agents and the ServiceNow Alliance

On the software front, Nvidia is pushing deeper into enterprise automation through a tie-up with ServiceNow. The centerpiece is "Project Arc," an autonomous desktop agent unveiled at ServiceNow's Knowledge 2026 conference in Las Vegas. The agent runs on Nvidia's OpenShell runtime — a secure execution environment for AI agents — and is managed via the ServiceNow AI Control Tower.

Project Arc targets complex, cross-departmental workflows in IT, customer service, and operations, moving beyond simple task automation. ServiceNow is also integrating the AI Control Tower into Nvidia's Enterprise AI Factory, extending governance capabilities to large model workloads in data centers. The move signals Nvidia's ambition to evolve from a pure hardware supplier into a provider of end-to-end AI infrastructure.

Earnings on the Horizon: May 20 Looms Large

All eyes are now on May 20, when Nvidia reports first-quarter results. Analysts expect revenue of roughly $78.8 billion, representing year-over-year growth of about 79%. Earnings per share are forecast at $1.77 — more than double the prior-year figure. For the second quarter of fiscal 2027, Wall Street projects revenue of $86.6 billion.

The bullish sentiment is fueled by Nvidia's largest customers. Meta has raised its investment ceiling to $145 billion, while Microsoft has committed $190 billion in spending for 2026 — well above the $154 billion analysts had anticipated. Those numbers suggest current revenue estimates for Nvidia may still be too conservative.

Stock Momentum Meets Structural Headwinds

Nvidia shares are trading near €181, just shy of their 52-week high, and have gained roughly 74% over the past twelve months. The stock sits comfortably above all key moving averages. In euro terms, the share price is around €180.30, less than 1% below its 52-week peak.

Yet the rosy picture comes with clear caveats. US export restrictions continue to block sales of advanced AI chips to China, a market where Nvidia once led. Huang has pegged the company's market share for AI accelerators in China at zero percent — a stark reversal from two years ago. Nvidia's own guidance for the first quarter already assumes zero data center revenue from China.

Analysts see revenue growth above 80% as the threshold for a fresh rally. Whether Nvidia clears that bar on May 20 — and what guidance management delivers for the rest of the fiscal year — will likely set the tone for the entire semiconductor sector.