Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

Blackstone appears to be a high-quality business, but the current valuation is already noticeably ahead of its fundamental momentum. On valuation multiples, the company trades significantly above the industry median: P/E, P/S, P/B, and P/FCF are at very high levels, which usually indicates an expensive valuation and limits further upside potential without an acceleration in earnings. At the same time, the ratios themselves are not deteriorating dramatically overall, and in some cases are even declining from their peaks, but this is still not enough to justify such a large premium to the sector. Profitability is strong: ROE, ROA, ROI, and return on tangible equity are above industry benchmarks, while operating margin and net margin remain at a high level and appear stable over the years. This is an important positive, because the company is able to convert revenue into profit better than most competitors. However, liquidity is weak: the quick ratio is zero, and the current ratio is below one, which for an investor means limited short-term financial flexibility. The debt burden does not look critical, but debt/equity and long-term debt are at elevated levels and show no clear improvement in trend. Dividend yield has increased, which supports the investment case, but it is still not high enough to offset the stock’s expensive valuation. In absolute terms, the business remains large: assets, equity, and earnings are substantial, and net income and operating income are at strong levels. At the same time, revenue and EBITDA appear uneven year to year, without a sustained acceleration, which weakens the case for an aggressive upward re-rating. Overall, Blackstone’s fundamentals are more strong than weak, but the market is already pricing in a great deal of good news. For an investor, this means the stock looks high quality but not cheap, and a conservative valuation approach is more appropriate. Given the high premium on valuation multiples and the mixed liquidity and debt dynamics, it is reasonable to slightly lower the target rather than raise it.

Blackstone Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Blackstone demonstrates strong profitability and returns, but trades at a high premium to the industry and has weak short-term liquidity, which limits upside.

Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Blackstone Inc (Symbol: BX) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.16), with the stock changing hands as low as $128.99 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. Blackstone Inc (Symbol: BX) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Blackstone Inc, looking at the history chart for BX below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
Further BX Research:

Blackstone (BX) Shares Cross 4% Yield Mark

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Robinhood Markets Inc (Symbol: HOOD), where a total of 116,244 contracts have traded so far, representing approximately 11.6 million underlying shares. That amounts to about 54.1% of HOOD's average daily trading volume over the past month of 21.5 million shares. Particularly high volume was seen for the $125 strike call option expiring September 11, 2026, with 9,262 contracts trading so far today, representing approximately 926,200 underlying shares of HOOD. Below is a chart showing HOOD's trailing twelve month trading history, with the $125 strike highlighted in orange:
Blackstone Inc (Symbol: BX) saw options trading volume of 18,251 contracts, representing approximately 1.8 million underlying shares or approximately 52.7% of BX's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $133 strike put option expiring September 11, 2026, with 2,446 contracts trading so far today, representing approximately 244,600 underlying shares of BX. Below is a chart showing BX's trailing twelve month trading history, with the $133 strike highlighted in orange:
And Texas Pacific Land Corp (Symbol: TPL) options are showing a volume of 1,888 contracts thus far today. That number of contracts represents approximately 188,800 underlying shares, working out to a sizeable 52.4% of TPL's average daily trading volume over the past month, of 360,285 shares. Particularly high volume was seen for the $300 strike put option expiring October 16, 2026, with 826 contracts trading so far today, representing approximately 82,600 underlying shares of TPL. Below is a chart showing TPL's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for HOOD options, BX options, or TPL options, visit StockOptionsChannel.com.
Further HOOD Research:

Notable Wednesday Option Activity: HOOD, BX, TPL

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $165.7 million dollar outflow -- that's a 0.1% decrease week over week (from 1,024,650,000 to 1,023,300,000). Among the largest underlying components of IWF, in trading today McKesson Corp (Symbol: MCK) is up about 2.3%, Trane Technologies plc (Symbol: TT) is off about 0.7%, and Blackstone Inc (Symbol: BX) is lower by about 1.8%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $102.23 per share, with $129.14 as the 52 week high point — that compares with a last trade of $121.42. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IWF Research:

IWF, MCK, TT, BX: Large Outflows Detected at ETF

Nvidia NVDA) stock has surged more than 7% on Thursday after the AI chip giant delivered another blockbuster quarterly report yesterday evening and, more importantly, gave Wall Street considerably more confidence that its extraordinary growth can extend well into next year.
Ahead of the report, several key questions surrounded Nvidia's Q2 results: whether its Vera Rubin platform was ramping on schedule, if gross margins could remain near 75%, and how much of the massive AI infrastructure buildout Nvidia would ultimately have to finance itself.
The answers were mostly encouraging, although investors still have a few risks to weigh before chasing today's rally.
Nvidia Crushes Q2 Expectations and Raises the Growth Bar
Nvidia posted Q2 revenue for its current fiscal 2027 of $96.22 billion, soaring 106% from $46.74 billion in the prior year quarter and comfortably topping estimates of $91.79 billion.
Adjusted net income came in at $53.95 billion, or earnings of $2.22 per share, up 120% year over year and beating Q2 EPS expectations of $2.09 by 6%. Data Center sales were the standout once again, jumping 117% to a record $89 billion.
Even more impressive was Nvidia’s outlook. The chip giant expects Q3 revenue of $108 billion, plus or minus 2%, with no Data Center compute sales from China included in that forecast.
Management also offered a preliminary expectation for roughly 70% revenue growth in fiscal 2028, despite anticipating that supply will remain constrained through the end of that reporting year.
That longer-term outlook arguably provided the biggest catalyst for today's rally, as Wall Street had been bracing for a much steeper slowdown in Nvidia's growth rate.
To that point, its Q3 revenue forecast came in above analyst consensus estimates of $102 billion (Current Qtr below), while the FY28 preliminary revenue forecast is well ahead of Zacks current projections of $553.24 billion or 42% growth.
Vera Rubin Is Becoming Nvidia's Next Growth Engine
The Vera Rubin ramp also provided the confirmation investors were looking for.
Production shipments began earlier this month, and Nvidia says it has already received purchase orders from every major hyperscaler, AI cloud provider, and system original equipment manufacturer (OEM).
Management expects Vera Rubin to account for roughly 20% of Data Center revenue in Q3 and believes it could become the fastest product ramp in Nvidia's history.
This suggests Nvidia is transitioning from its Blackwell platform to its next-generation AI architecture without the growth pause investors might normally expect during a major product cycle.
Gross Margins Are the Biggest Near-Term Blemish
Profitability remains exceptional, but this was one area where the report was less reassuring.
Nvidia maintained a 75% gross margin in Q2, but management expects it to slip to roughly 74% in Q3 and bottom between 71% and 72% in Q4 as surging memory prices increase system costs. Nvidia expects margins to settle around 72%-73% in FY28, with planned price increases beginning to provide some relief early next year.
Considering Nvidia's staggering revenue growth, these margins remain enviable. Still, investors should no longer assume that mid-70% gross margins are guaranteed as increasingly complex AI systems push component costs higher.
Over the trailing twelve months (TTM), Nvidia’s 74% gross margin has impressively outpaced the S&P 500’s 53% average and has topped its Zacks Semiconductor-General Industry average of 72%
Image Source: Zacks Investment Research
Is Nvidia Shifting the AI Financing Burden?
Nvidia's balance sheet remains formidable. The company finished Q2 with roughly $99 billion in cash and marketable debt and equity securities, while generating $24.1 billion in operating cash flow during the quarter.
However, Nvidia is deploying significant amounts of capital across its ecosystem. Non-marketable securities rose to more than $51 billion from $22 billion at the beginning of the fiscal year, while the company purchased $15.8 billion of equity securities during Q2 alone. Its supply and capacity commitments also surged from $119 billion last quarter to roughly $279 billion as Nvidia locks down memory and manufacturing capacity for future demand.
That said, Nvidia appears to be finding ways to bring much deeper pockets into the AI buildout. Its partnerships with major investment firms Apollo Global Management APO), BlackRock BLK), Blackstone BX), Brookfield Asset Management BAM), Goldman Sachs GS) and KKR KKR) are intended to mobilize more than $500 billion of third-party capital for AI infrastructure, creating independent pools of financing for Nvidia customers.
That could gradually shift more of the burden away from Nvidia's own balance sheet, although investors should continue monitoring its guarantees, strategic investments, and other commitments as the AI spending boom grows larger.
Monitoring Nvidia’s Valuation
Despite today's rally, Nvidia stock is still trading at just under 24X forward earnings following its impressive Q2 EPS beat.
Furthermore, upward earnings estimate revisions after such a strong report and outlook could quickly make Nvidia’s valuation even more appealing. Notably, NVDA is trading near its decade-low forward P/E of 20X and at a nearly 50% discount to its 10-year median of 45X.
Image Source: Zacks Investment Research
And if you're wondering, NVDA’s return over the last decade is near a staggering 14,500%
Image Source: Zacks Investment Research
Bottom Line: Should Investors Chase the NVDA Rally?
There is considerably more to like about Nvidia following Q2 earnings. The company crushed expectations, issued strong Q3 guidance, provided surprisingly bullish FY28 commentary, and offered concrete evidence that Vera Rubin is already becoming its next major revenue engine.
Margin pressure and Nvidia's enormous financial commitments prevent the story from being completely risk-free, and investors don't necessarily have to chase a 7% one-day spike. Still, the rally appears fundamentally supported rather than simply driven by post-earnings enthusiasm.
Most importantly, NVDA now sports a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision outlook.
For long-term investors, Nvidia's valuation still looks surprisingly reasonable relative to its growth trajectory, making pullbacks particularly attractive and today's post-earnings rally difficult to bet against.
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This article originally published on Zacks Investment Research (zacks.com).

Nvidia Stock Soars After Q2 Earnings: Is NVDA Still a Buy?

Key Points
Realty Income has a strong investment case over the next five years.
VICI Properties has a similarly strong case.
Despite that, it trades at a much lower valuation, which is why it currently has a higher yield.
I expect VICI Properties (NYSE: VICI) to outperform Realty Income (NYSE: O) over the next five years. That's a bold prediction for someone as bullish on Realty Income as I am. It's because I believe VICI Properties is much cheaper relative to Realty Income right now.
Here's why I expect this top high-dividend REIT to outperform Realty Income stock over the next five years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Realty Income has a strong investment case
I want to be clear that I firmly believe Realty Income will be a strong investment over the next five years. The REIT has a diversified portfolio of durable properties (retail, industrial, gaming, and data centers). They provide it with resilient rental income to support its high-yielding monthly dividend (currently yielding over 5%). The REIT has a terrific track record of dividend growth, with 135 increases since its public market listing in 1994 and a 4.1% compound annual dividend growth rate.
I expect its growth to continue. Realty Income has a conservative dividend payout ratio (less than 75% of its adjusted funds from operations, or AFFO) and a strong investment-grade balance sheet (A-rating). It also has a growing list of strategic partners that provide growth capital and new investment opportunities, including Blackstone, which has closed two gaming investments with the REIT. I think Realty Income can continue growing its AFFO per share at a low- to mid-single-digit annual rate over the next five years to support continued dividend increases. Add that to its yield, and its total annual return could average around 10%, assuming no change in its valuation multiple.
The investment case for VICI Properties is even better
VICI Properties shares many similarities with Realty Income. It also invests in net lease real estate, though it focuses exclusively on experiential properties (i.e., gaming, hospitality, wellness, entertainment, and leisure destinations). It also has a strong dividend growth track record (every year since its IPO in 2018, at a net lease REIT-leading 7% compound annual rate) and a rock-solid financial profile (sub-75% AFFO payout ratio and an investment-grade balance sheet).
One core difference is the duration and inflation protection of its net leases. It typically invests in properties secured by very long-term leases (an average remaining lease term of 40 years), much longer than the 8-14-year average for net-leased properties. Meanwhile, an increasing percentage of its leases feature inflation-linked rental escalations (45% in 2026, rising to 87% by 2035), compared with the low fixed annual rent growth in most net leases. As a result, VICI Properties delivers faster same-store rent growth (1.7% in 2026, compared to the 0.4% sector average and 1.1%-1.3% for Realty Income). Add in acquisitions, and I think VICI can deliver mid-single-digit annual AFFO per share growth over the next five years.
Despite the similarities and the areas where VICI Properties stands above its peers, it trades at a much lower valuation than Realty Income (10.6x AFFO vs. 14.1x). That's why it has a higher dividend yield at nearly 7%.
Dual outperformance drivers
VICI Properties currently trades at a discount to Realty Income, even though it invests in properties with similar leases. I expect this discount to narrow over the next five years. Add that to its higher dividend yield, and I anticipate VICI Properties will produce a higher total return. While I own both REITs, I'd make a larger wager on VICI Properties right now because it could deliver bigger winnings over the next five years.
Should you buy stock in Vici Properties right now?
Before you buy stock in Vici Properties, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vici Properties wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 27, 2026.
Matt DiLallo has positions in Blackstone, Realty Income, and Vici Properties. The Motley Fool has positions in and recommends Blackstone and Realty Income. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.

Prediction: This High-Yield Dividend Stock Will Outperform Realty Income Over the Next 5 Years

Key Points
Nvidia recently partnered with six financial institutions to create a new financing platform that will help smaller enterprises and AI labs purchase AI systems.
Many experts have been working under the assumption that Nvidia chips have a useful life of two to five years, but the actual figure may be closer to nine years.
Among 67 Wall Street analysts, Nvidia has a median target price of $300 per share. That implies 44% upside from its current share price of $208.
Nvidia (NASDAQ: NVDA) has been a cornerstone of the artificial intelligence (AI) trade since OpenAI introduced ChatGPT in late 2022. Shares have advanced more than 1,300% since January 2023, and most Wall Street analysts still view the stock as undervalued.
Nvidia recently announced a strategic partnership with six of the world's largest financial institutions to secure more than $500 billion in financing for potential customers. That capital will unlock demand by helping smaller enterprises and AI labs purchase Nvidia systems.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Here are the important details.
Nvidia taps a new $500 billion opportunity with a novel financing platform
Nvidia recently partnered with six financial institutions -- Apollo Global, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR -- to create new financing platforms designed to mobilize more than $500 billion in capital for artificial intelligence infrastructure. Nvidia itself may backstop up to $125 billion, or 25% of deals.
Nvidia hardware generally comes with a hefty price tag, which can make it prohibitively expensive for smaller enterprises and AI labs. These financing platforms aim to remove that obstacle by providing prospective customers with an alternative path to purchasing AI infrastructure. In doing so, they will extend Nvidia's addressable market.
"We are helping create a new class of productive, investable infrastructure: AI factories," CEO Jensen Huang commented in the press release. "These financing platforms will help customers access scarce compute at scale and build the AI factories that will power every industry and country in the age of AI."
The market may be underestimating the useful life of Nvidia chips
Nvidia systems are the industry standard in artificial intelligence infrastructure. With a full-stack approach that spans integrated hardware and software, the company can optimize data centers for performance and power efficiency in ways that most competitors cannot.
Jensen Huang says Nvidia systems cost less per token, generate more revenue, and have longer lifespans than alternative solutions. Indeed, there is evidence that Nvidia systems are proving much more durable than the market initially assumed. Neocloud CoreWeave recently signed a contract to rent Nvidia A100 GPUs (introduced in 2020) through 2029.
Analyst Kyle Reidhead recently explained the situation during an interview with Schwab Network: "What we are realizing is that the GPUs are used first for training on frontier models for about two or three years, then you get another three years on inference, and another three, four, or five years on niche training and niche work for enterprises."
So what? Michael Burry, best known for shorting subprime mortgages ahead of the financial crisis in 2008, currently has short positions in Nvidia and other AI companies. His rationale centers on this idea: The useful life for server equipment is about two to three years, but hyperscalers are depreciating the hardware over five years, which overstates the return on their investments in AI infrastructure.
However, recent commentary from CoreWeave suggests the useful life of Nvidia GPUs is much longer than five years, meaning hyperscalers may actually be understating the return on investment in AI infrastructure. And if the useful life of Nvidia chips is longer than previously anticipated by the market, it could strengthen the company's pricing power, as customers would theoretically be willing to pay more for a longer-lived product.
Wall Street analysts think Nvidia stock is deeply undervalued
Looking ahead, Wall Street estimates Nvidia's earnings will increase at 44% annually over the next three years. That makes the current valuation of 32 times earnings look downright cheap. Indeed, most Wall Street analysts believe the stock is undervalued.
As of Aug. 24, Nvidia has a median 12-month target price of $300 per share, according to The Wall Street Journal. That represents the consensus estimate among 67 analysts, and it implies 44% upside from the current share price of $208. Patient investors should consider buying a small position in Nvidia today.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,488!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,279,584!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 26, 2026.
Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs Group, KKR, and Nvidia. The Motley Fool has a disclosure policy.

Nvidia Stock Has a New $500 Billion Opportunity in the Artificial Intelligence (AI) Boom

Key Points
Data centers now drive over 90% of Nvidia’s revenue.
Nvidia sells a complete AI platform, it sells GPUs, networking, systems, and software.
Custom AI chips, slower AI spending, and regulation could challenge Nvidia’s growth but this ticker is set to run into next year.
Tech stocks, AI stocks, semiconductor stocks, it seems like everyone is trying to catch the next Nvidia (NASDAQ: NVDA). When people look around for the best semiconductor stock to buy right now, I don't go to any flashy new names; I still go straight back to good ol' Nvidia. I've watched chips and cycles come and go, and no other name sits as close to the center of the AI world as Nvidia does today.
In the first quarter of fiscal 2027 (ending April 26, 2026), Nvidia reported revenue of $81.6 billion, with data center sales of $75.2 billion, up 93% year over year and now more than 90% of the company's total revenue. That data center number matters more than any gaming rebound or auto contract because it shows where the company now lives. Every time Microsoft, Meta Platforms, Amazon, or Alphabet expands its AI clusters, it spends large sums on Nvidia systems. When sovereign funds and start-ups talk about AI factories, they are mostly talking about racks full of Nvidia hardware and software.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The hardware itself has moved past single chips. Blackwell GPUs pack around 208 billion transistors and use a custom chip process. Two dies are tied together via a 10-terabyte-per-second link, so they behave like one large device. Those GPUs then slot into systems like GB200 and GB300 that connect Grace CPUs, Blackwell accelerators and Spectrum networking into unified AI racks. On top of that stack, you find CUDA, Nvidia AI Enterprise, and an ecosystem of tools for training, fine-tuning, and inference. All this sounds heavy, but in other words, Nvidia does not sell just chips alone. It sells an AI factory-in-a-box.
Why Nvidia heading into 2027?
What keeps me in the stock heading into 2027 is how demand and pricing look together. AI factory compute has become an investable asset class in its own right. Nvidia has partnered with BlackRock, Blackstone, Goldman Sachs, and others to help mobilize more than $500 billion in third-party capital to finance AI infrastructure, with Nvidia designing and supplying the platforms.
Rental pricing for H100s and B200s tells the same story. One year, H100 rates climbed from about $1.70 per GPU-hour in October 2025 to roughly $2.35 per GPU-hour in March 2026, with on-demand cloud prices near $2.70 per GPU-hour by June. Blackwell rates run higher still in a band from about $5.30 to $7.05. Those numbers show that Nvidia has not had to discount its way through this boom.
The mental side of Nvidia
There is also a psychological side that investors rarely admit but that matters. Nvidia has become the default AI ticker. When a retail trader wants exposure to AI, the first search box entry is Nvidia. When a pension fund wants a core AI position without building a basket of small names, Nvidia is the simple answer. Analysts cover the company closely, and price targets for the next year still point to gains from current levels on top of an already large move. Popularity can cut both ways in corrections, yet it also means Nvidia has steady access to capital and close scrutiny, which tends to keep execution sharp.
None of this means Nvidia is risk-free. Custom ASICs will chip away at some workloads. AI capex cycles can slow if macro conditions shift or if major customers pause spending. Regulators around the world are paying closer attention to concentration in compute supply. Those concerns matter. When I weigh them against the current setup, though, I still see Nvidia as the best way to own the AI infrastructure theme through 2027. Data center revenue growth, full-stack systems, strong pricing, and deep mindshare all point in the same direction.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 24, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, BlackRock, Blackstone, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

I've Covered Semiconductors for Years. Nvidia Is My No. 1 Pick Heading Into 2027.

Key Points
The A100 renewal breaks the obsolescence thesis. CoreWeave disclosed on its Q2 2026 call that a cluster of Nvidia A100 GPUs, introduced in 2020, is contracted through 2029. Management framed this as evidence that once initial debt service and capital recovery are behind a GPU cluster, renewals become high-margin, not distressed sales.
Lenders are underwriting residual value for the first time. CoreWeave's new $2.6 billion DDTL 5.5 facility carries a five-year maturity against customer contracts that average only three years, a structural break from prior deals where debt maturity matched contract length exactly. That gap is lenders betting GPUs will still be earning after the first contract ends.
Nvidia is building the market to formalize this. Nvidia's MOU with six major asset managers and banks (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, KKR) aims to mobilize over $500 billion to treat AI compute as long-duration infrastructure, not disposable hardware. Watch for whether H100 fleets renew on similar terms as the real test of whether this thesis scales beyond one A100 cluster.
Wall Street treats GPUs like disposable electronics. CoreWeave (NASDAQ: CRWV) is running them like long-duration infrastructure.
What's the deal with this stock?
CoreWeave is borrowing tens of billions of dollars to buy Nvidia (NASDAQ: NVDA) chips and rent them to AI software builders. The bear case against the stock is simple: Graphics chips age quickly. If Nvidia launches faster processors every 12 months, three-year-old chips should become useless, trapping CoreWeave in a cycle of taking on new debt just to replace dying hardware.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That theory has a flaw. The real-world contract data shows older chips are not dying.
Wall Street thinks GPUs decay like iPhones. The contracts say otherwise.
On its Q2 2026earnings call CoreWeave disclosed a multi-year renewal on a cluster of Nvidia A100 GPUs extending into 2029. Nvidia introduced the A100 in 2020. That means an architecture introduced in 2020 can still generate contracted cash flow nearly a decade later.
Management explicitly laid out the mechanism: As earlier-generation fleets finish their initial contracts, they deliver returns in subsequent years because much of the underlying capital burden has already been paid down. Wall Street models assumed older GPUs would be retired or deeply discounted. Instead, they are staying online at attractive prices.
Older chips do not need to win benchmarks to make money
Scarcity explains part of this demand. Power connections take 18 to 24 months to build, so software teams rent whatever active compute is available today. But the longer-term mechanism is workload cascading.
The newest chips naturally get the jobs where speed matters most. Older chips can move down the stack to fine-tuning, inference, coding workloads, and smaller models where customers care more about cost than benchmark leadership.
As the market matures, compute demand splits by cost and task:
Frontier pre-training: Uses top-tier processors like Blackwell because raw speed dictates training time.
Fine-tuning and domain adaptation: Moves to previous-generation chips like the H100, where customers can trade some speed for a lower cost.
Inference and everyday applications: Operates on older architectures like the A100.
An older GPU does not need to beat a new chip on raw speed. It only needs to be cheap and reliable enough for tasks that do not justify top-tier pricing.
The second lease is where the real economics live
The economics of a GPU cluster change after its initial contract. During the first lease (typically three to five years), customer payments recover a substantial portion of the original hardware cost and service the debt used to buy it. By the time that lease expires, the unrecovered capital burden sitting on those servers drops significantly.
Second and third leases operate on a different financial equation. Power, facility rent, and maintenance still cost money. But the heavy debt service and capital recovery are largely finished. Every dollar of revenue from a renewal generates higher incremental returns on already-recovered capital.
That creates an asset-management flywheel: The initial contract carries most of the capital burden. The extension monetizes an asset whose original investment has already been substantially recovered.
Lenders are now betting on what happens after year three
Debt markets are beginning to price in this residual value. Historically, lenders matched GPU debt maturities directly to the length of the underlying customer contract. CoreWeave's $2.6 billion DDTL 5.5 debt facility broke that pattern. The debt carries a five-year maturity, but the customer contracts backing it average only three years.
That gap matters. Lenders are accepting exposure beyond the initial customer lock-in, which suggests they are increasingly comfortable underwriting some residual economic value after the first contract ends.
Nvidia is building a broader framework around this concept. It partnered with a consortium of six major asset managers and banks (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR) to mobilize over $500 billion of private capital, explicitly aiming to turn AI compute into a recognized investable asset class. Reporting indicates Nvidia may even provide limited residual-value support on certain debt structures. When equipment suppliers and private credit markets back residual value, GPU compute stops looking like disposable tech hardware and starts looking more like financed infrastructure.
Verdict: The asset machine is working, but leverage is the price of admission
CoreWeave is making a clear trade-off. It is taking on heavy debt and significant near-term interest drag to build a massive pool of infrastructure. That strategy fails if older GPUs lose their rental value quickly.
The A100 extension shows that older GPUs can remain economically useful far longer than the bear case assumes. CoreWeave's real advantage is not just getting new Nvidia chips first. It is extracting cash from second and subsequent contracts on hardware the market assumed would be obsolete.
Watch what happens as the first H100 contracts mature and how cheaply CoreWeave can continue financing project-level infrastructure. If older fleets keep renewing at attractive economics while SPV financing remains cheap, the residual-value thesis gets stronger.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!*
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Beegee Alop has positions in CoreWeave and Nvidia. The Motley Fool has positions in and recommends BlackRock, Blackstone, Brookfield Corporation, Goldman Sachs Group, KKR, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I Think You Missed CoreWeave's Zero-Cost-Basis Engine

Key Points
While details are still scant, Nvidia CEO Jensen Huang and other Wall Street CEOs discussed potentially using chips as collateral.
The group says they are exploring raising half a trillion dollars that AI companies could tap into.
Huang also discussed potentially having Nvidia backstop part of each loan, at the company's discretion.
In 1970, Ginnie Mae first introduced the concept of a mortgage-backed security (MBS), a financial asset backed by a pool of mortgages that serves as collateral and passes its cash flows to investors.
It marked the birth of asset-backed securitization, which would spread to a wide range of assets, including auto loans, personal loans, student loans, and a broad swath of commercial loans.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Now, Nvidia (NASDAQ: NVDA) CEO Jensen Huang has a bold plan to launch what essentially amounts to chip-backed securities, with the collateral being graphics processing units (GPUs).
Huang is planning to partner with major Wall Street firms to create these financial instruments to continue fueling the AI build-out. What could go wrong?
Turning to private credit
Thus far, much of the AI build-out has been made possible by the hyperscalers' balance sheets. Companies like Microsoft, Alphabet, Amazon, and Meta Platforms have long been cash-generating machines.
But in recent years, they've depleted much of their free cash flow, raised equity, and turned to debt to fund what looks set to surpass $700 billion in capital expenditures this year, with plans to ramp that higher next year.
Now, Huang and a group of top private credit players on Wall Street, including Goldman Sachs (NYSE: GS), BlackRock, Blackstone, KKR, Apollo, and Brookfield, are teaming up to potentially find the necessary funding for the continued build-out.
While still in its infancy, the plan is for Nvidia to partner with these firms to raise $500 billion in capital that key stakeholders in the AI ecosystem could tap to keep building data centers and purchase the necessary equipment that makes the data centers operational.
AI labs, enterprises, and AI cloud players would be able to obtain this capital at attractive rates, according to a press release from Nvidia. And while the concept isn't fully fleshed out, it sounded like the capital would be raised from investors who buy securities backed by the GPUs in data centers.
"You can think about it as a revenue stream, and you can securitize it or effectively divide that risk and sell it to investors who want to participate anywhere in that stack," Waldemar Szlezak, KKR's head of digital infrastructure, said during a CNBC panel.
Huang added that the compute provided by Nvidia is "broadly adopted, flexible across models and workloads, fungible and transferable across customers and operators, and continuously improved through CUDA software -- extending its useful life and improving its economics over time."
Interestingly, Nvidia said it may, on a case-by-case basis, offer to guarantee a quarter of each loan, which could lead to better interest rates for its partners.
However, borrowers will need to use Nvidia's preferred system architecture, so another company could take over the infrastructure if the borrower no longer has the means to continue operating it.
"You're starting to see, in a sense, you know, asset-based financing against this infrastructure build-out," Goldman Sachs CEO David Solomon told CNBC. "That's not surprising because these are real assets. They have real value."
What could go wrong?
A plan like this could make investors nervous because it bears remnants from the Great Recession.
In 2008, pools of collateralized mortgages that went bad led to huge losses in MBSes, which rippled through the market. It's not necessarily the financial structure of an asset-backed security that's bad; it's the collateral behind these instruments that could lose value.
During the Great Recession, no one thought housing prices would go down, but they eventually did. Furthermore, having Nvidia backstop the loan also puts the whole system at risk if something were to happen to Nvidia.
Private credit funds can also face redemption requests, so the structure of these deals is likely to feature lock-up provisions. Investors may also have an issue with Huang's statement about extending the useful lives of its chips.
Many of the bears have already argued that the hyperscalers are not properly accounting for depreciation, as chips will have shorter lifespans than they claim due to the regular release of new chip models.
It's still early, and the details of these future financing agreements are far from ironed out or even officially in motion. But it's certainly an interesting development to keep an eye on, as finding the funding for the continued build-out of AI infrastructure is key to the AI trade.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia CEO Jensen Huang Just Introduced a Bold $500 Billion Plan to Potentially Create Chip-Backed Securities. What Could Go Wrong?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $232.6 million dollar outflow -- that's a 1.5% decrease week over week (from 520,350,000 to 512,350,000). Among the largest underlying components of HDV, in trading today McDonald's Corp (Symbol: MCD) is up about 0.1%, Blackstone Inc (Symbol: BX) is up about 1.6%, and Southern Company (Symbol: SO) is up by about 0.4%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $23.515 per share, with $29.61 as the 52 week high point — that compares with a last trade of $29.32. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further HDV Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Blackstone Inc.

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