Nvidia's 27% Monthly Growth Curve Collides With a Cooling Share Price

Huang pushes back on AI spending fears as Nvidia signs a $12.93B Hugging Face deal and weighs a $10B Anthropic IPO stake.

Jensen Huang used his Thursday appearance at Goldman Sachs' Communacopia+ technology conference to push back hard against the idea that the AI spending cycle is running out of road. The Nvidia chief argued the buildout of AI infrastructure is still in its early innings, with demand from cloud providers, enterprises, device makers and the so-called neoclouds showing no sign of fading. Systems built on Grace, Blackwell and NVLink, he noted, are compounding at 27% month over month.

That message lands at an awkward moment for the stock. Nvidia closed Friday at EUR 188.22, essentially flat on the day but down 5.4% over the week. The shares sit 7.1% below their 52-week high of EUR 202.50, a level set only in mid-May. Huang's remarks read as a deliberate effort to steady nerves over the durability of AI demand — nerves that appear to have been weighing on the price.

A deal signed, but not yet closed

The conference stage is only part of the story. On September 2, Nvidia signed a definitive agreement to acquire Hugging Face for USD 12.93 billion, according to a filing with the U.S. securities regulator. The contract is inked, but completion isn't expected until the first half of 2027 — a detail that matters for anyone treating the transaction as already banked. The regulatory and operational distance still to be covered is considerable.

Running alongside that, reports suggest Nvidia could act as an anchor investor committing as much as USD 10 billion to Anthropic's planned IPO, against a target deal size of USD 100 billion and a valuation of roughly USD 2 trillion. Talks are explicitly described as preliminary by Reuters, Bloomberg and CNBC. Taken together — buying developer tooling for its own platform through Hugging Face while taking a financial stake in one of the most aggressive model builders — the strategy shows a company converting market power into capital allocation rather than simply administering it.

Insider sales, put in proportion

Director Mark Stevens parted with roughly 822,000 shares in early September through a trust, at weighted average prices between USD 227.70 and USD 234.00, raising about USD 235.6 million on that block alone. General Counsel Timothy Teter sold an additional 29,000 shares in late August. Director Tench Coxe, meanwhile, gifted 500,000 shares under an automated trading plan set up back in March — a mechanism fixed months in advance, not a sudden loss of confidence.

Sales of that magnitude can look alarming at first glance. Yet for a company with a market capitalization north of EUR 4.5 trillion, nine-figure disposals by individual executives look more like portfolio housekeeping than a signal. The read here isn't management distrust in its own stock, but the simple need to diversify wealth after years of share price appreciation.

The numbers backing the bull case

Fundamentals offer little ammunition to the bears. In the second quarter of fiscal 2027, revenue climbed 106% to USD 96.2 billion, with the data center business alone contributing USD 89.0 billion and gross margin coming in at 75.0%. For the third quarter, Nvidia is guiding to USD 108.0 billion in revenue — explicitly excluding any data center sales from China. That's a conservative construction that leaves room to the upside should the China situation ease.

The new Vera Rubin platform is already running with cloud partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius, and is expected to account for roughly a fifth of data center revenue in the third quarter. Piper Sandler initiated coverage on September 10 with a USD 300 price target and an "Overweight" rating; analyst David O'Connor points to an 80% share of AI compute and projects annual revenue growth of 47% through fiscal 2030.

Widening the footprint beyond the data center

The same day as Huang's conference appearance, Nvidia unveiled a string of partnerships meant to demonstrate the breadth of its business. Together with firms including Firmus, Sharon AI, IREN, Megaport, ResetData, CDC, NEXTDC and AirTrunk, it plans to build up to two gigawatts of AI infrastructure in Australia by 2027. A separate collaboration with Palantir Technologies will initially deploy sovereign AI applications for critical supply chains inside Nvidia's own operations. At the IBC 2026 media fair, the company rolled out an expanded "AI for Media" offering aimed at broadcasters, sports providers and global streaming services — an attempt to carry its accelerators and software platforms into industries well beyond classic data center customers.

The consumer side is moving too. According to Reuters, Lenovo and Acer will bring the first Windows machines powered by the RTX Spark chip to market in October, another step in pushing AI functions directly into PCs. Nvidia also announced new titles for its GeForce NOW streaming service for September, led by the basketball game NBA 2K27 with a new rendering technique called DLSS 5.

Where the real uncertainty sits

The share price currently trades 1.7% above its 50-day moving average of EUR 185.03, a sign of fundamentally intact but hardly euphoric sentiment. The pullback of recent weeks looks more like a breather than a fundamental re-rating, particularly since Huang's demand commentary offers no evidence of a slowdown. The stock remains above its 200-day average and well clear of its yearly low.

For all the operational breadth on display — growth rates, margins, strategic acquisitions — the genuine unknown isn't what management is doing internally. It's how quickly the multibillion-dollar wagers on Hugging Face and Anthropic actually pay off. Until the first deal closes and a decision lands on the second, Nvidia remains a case of fundamentals versus jitters. So far, the fundamentals are winning.