NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

NVIDIA looks like a company with exceptional operating strength, but the market is already pricing in a very high bar of expectations. TTM revenue has grown to $96.2 billion, while gross profit, EBITDA, and net income have reached $72.1 billion, $64.9 billion, and $59.7 billion, respectively, confirming the scale and quality of demand monetization. Margins are impressive: gross margin at 74.7%, operating margin at 65.2%, and net margin at 63.7%, with all three improving year over year, which points to strong pricing power and highly efficient operations. Profitability on capital is also extremely high: ROE of 110.1%, ROA of 81.4%, and ROI of 102.1%, well above industry medians and indicating outstanding returns on invested capital. The balance sheet remains comfortable as well: debt/equity is just 0.14, current ratio is 4.59, and quick ratio is 3.85, while the cash position of $99.4 billion provides a strong cushion. Long-term debt of $7.47 billion looks moderate relative to the scale of assets and capital, so liquidity and solvency risks are limited. However, the valuation is already very demanding: P/S of 17.78, P/B of 24.48, and P/FCF of 40.56 are significantly above the industry median, which means that even with strong fundamentals, the upside from further re-rating is limited. P/E of 27.91, by contrast, is below the industry median, but that does not fully offset the premium on the other multiples, especially given the already high expectations base. Dividend yield of 0.11% remains symbolic and does not add meaningful support to the investment case through cash return. Overall, the fundamentals justify a premium to the market, but not such a large one as to aggressively raise the target price: strong growth and margins are balanced by a very expensive valuation on revenue, book value, and free cash flow. For an investor, this is a story of quality and leadership, but with much of the optimism already reflected in the price, so any adjustment should be moderately restrained.

NVIDIA Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Медведи в растерянности.

Strong index, slightly down. The bears are confused.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Сильный индекс, значительно вырос. Рынок на стороне медведей.

Strong index, significantly up. The market is on the bears' side.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Сильный индекс, значительно вырос. Приток средств в шорты резко увеличился и находится на высоком уровне.

Strong index, significantly up. The inflow of funds into shorts has increased sharply and is at a high level.

NVDA’s strongest margins, profitability, and liquidity support a premium to the market, but very high P/S, P/B, and P/FCF ratios limit further upside.

Key Points
Oracle delivered 850 megawatts of AI capacity, containing more than 300,000 GPUs, to customers in its fiscal first quarter alone.
Even after those additions, Oracle said GPU utilization across its fleet was 97.9%.
GPU capacity that came up for renewal was renewed or resold at a 20% premium, and most of those chips are at least 4 years old.
Oracle (NYSE:ORCL) spent Thursday evening'searnings callputting numbers on something Nvidia (NASDAQ:NVDA) investors usually have to take on faith. The software and cloud giant delivered 850 megawatts of artificial intelligence (AI) capacity to customers in its fiscal first quarter of 2027 (the period ended Aug. 31). That hardware contained more than 300,000 graphics processing units (GPUs). And Oracle's GPU fleet ran at 97.9% utilization, meaning nearly every chip was busy serving customers.
Most of those chips are Nvidia's. Oracle's cluster design for its biggest AI deployments connects hundreds of thousands of Nvidia GPUs, and its largest planned builds target up to 800,000 of them.
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 »
So while Nvidia didnt reportthis week, a company installing its chips by the hundreds of thousands just showed what demand for them looks like.
Image source: Getty Images.
Deliveries nearly tripled, and the fleet stayed full
Underscoring how fast Oracle is building, the 850 megawatts it delivered was almost triple the prior quarter's total -- and 73% of everything it delivered in all of fiscal 2026. The company's campus in Abilene, Texas, which serves OpenAI, received 131,000 GPUs in the quarter. And revenue followed the hardware: Cloud infrastructure revenue rose 121% year over year to $7.4 billion. That growth is an acceleration from 93% in the fiscal fourth quarter and 77% for fiscal 2026 as a whole.
To me, utilization is the number to hold onto. A fleet can run full because its owner stopped adding capacity. Oracle's ran 97.9% full while capacity arrived at a record pace -- demand absorbed the hardware as fast as Oracle could install it.
Even more, customers keep lining up ahead of the supply. Oracle closed more than $30 billion of new AI contracts in the quarter. Its remaining performance obligations (contracted revenue it hasn't yet delivered) reached $664 billion, up $209 billion year over year.
Four-year-old chips are repricing higher
"Of all the GPUs that came up for renewal in Q1, that capacity was renewed or resold at a 20% premium to prior contracts," Oracle co-CEO Clay Magouyrk said on Thursday's call. "The majority of those GPUs are 4 years or older."
After all, computing hardware is supposed to get cheaper as it ages. GPUs that old predate Nvidia's Blackwell generation entirely, and with enough supply around, capacity like that would rent at a discount.
Instead, it repriced 20% higher. Prices tend to move that way when buyers can't get enough new hardware.
The revenue opportunity Nvidia sees per gigawatt of capacity is climbing a ladder of its own. A gigawatt of its older Hopper systems meant about $18 billion of revenue opportunity for Nvidia, chief financial officer Colette Kress said on the company's late-Augustearnings call Blackwell runs about $25 billion, and the new Vera Rubin platform is about $40 billion.
Customers paying a premium to keep 4-year-old chips arguably won't balk at those step-ups.
Does one crowded fleet prove a shortage?
Not on its own. Oracle's 97.9% covers one operator's fleet, not the industry's, and the company doesn't split the figure by chipmaker.
However, there's a second caveat. Oracle presells most of this capacity under long-term contracts (that $664 billion backlog). A full fleet partly reflects commitments customers made quarters ago.
But the seller's disclosures point the same way. Nvidia's revenue rose 106% year over year to $96.2 billion in its fiscal second quarter of 2027 (the period ended July 26). Data center revenue made up $89 billion of that.
Kress told analysts to expect about 70% revenue growth in fiscal 2028, with supply capping the figure. She also said Nvidia's compute was running fully utilized across every cloud it serves.
A vendor's assurance like that is easy to discount. Oracle just published the decimal.
The scale fits, too. At Kress's figures, Nvidia's $89 billion data center quarter works out to very roughly 3.5 gigawatts of systems. Oracle alone took delivery of 850 megawatts -- about a fourth of that pace. The comparison is loose (megawatts include far more than chips, and Oracle buys from more than one vendor). But it shows how much of this build-out one customer can absorb.
So, does Oracle's quarter prove a worldwide shortage? Proof is too strong a word for one company's fleet. Ultimately, though, I think it's the best customer-side evidence yet that what limits Nvidia is manufacturing capacity rather than appetite.
Nvidia shares trade around $220 as of this writing, about 8% below their 52-week high of $236.54, at about 28 times earnings. For a business whose 4-year-old products are repricing higher, I think that's a fair price, and I'd buy the stock here. If a future quarter shows Oracle's old GPUs repricing lower instead of higher, that will be an early sign the shortage is easing. This one showed the opposite.
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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Oracle. The Motley Fool has a disclosure policy.

Oracle's AI Chips Ran 97.9% Utilized Last Quarter. For Nvidia, That Is What a Shortage Looks Like.

Key Points
Nvidia and AMD are the two leading GPU designers for artificial intelligence (AI) workloads.
Elon Musk has spoken highly about Nvidia's GPUs in the past, and did so again during SpaceX'searnings call
Nvidia GPUs are now used in operations at both Tesla and SpaceX, the latter of which has turned its chip procurement into a lucrative AI infrastructure business.
The GPU market is dominated by a duopoly featuring Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). Nvidia is shipping Blackwell at enormous scale and ramping up Vera Rubin as the next rack-scale platform. Meanwhile, AMD is selling MI300 systems and lining up its next-generation MI400 accelerators to keep its seat at the table.
Amazon, Alphabet, Microsoft, Oracle, Meta Platforms, Anthropic, and OpenAI are not picking one vendor to supply chips for the artificial intelligence (AI) build-outs. Instead, they are stuffing solutions from both Nvidia and AMD into the same stacks because supply is tight, different workloads require specific architectures, and nobody can afford to sit around and wait.
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 »
This is the backdrop of the AI infrastructure landscape. However, during Space Exploration Technologies' firstearnings callas a public company, Elon Musk stepped into the chip arena and made his preference abundantly obvious.
Musk is not hedging his bets
During SpaceX's second-quarterearnings call Musk did not leave much room for interpretation. He stated:
[G]oing forward, we've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture. We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. So we're exclusive to Nvidia.
This really isn't a shock to anyone who has watched Tesla over the years. Tesla trains some of its autonomy stack on Nvidia's hardware even while the company works on its own inference chips for robotaxi and Optimus. Musk has previously expressed public admiration for Nvidia CEO Jensen Huang, acknowledging that Tesla and SpaceX will continue ordering Nvidia chips at scale. The SpaceX call simply solidified a relationship that already existed.
What is SpaceX doing with Nvidia's chips?
AI chips are not used only for chatbots on Earth. SpaceX is using clusters of GPUs to design orbital data centers, integrate with Starlink operations and Starship mission planning, as well as simulate the same kind of work Tesla is doing with its autonomous vehicles. The near-term buzz is around Starmind, an optimized satellite payload built on Nvidia's Vera Rubin NVL72 system.
SpaceX has already turned its Nvidia procurements into a fast-growing AI infrastructure business. Filings detail how the company is leasing large clusters of Nvidia compute rather than sitting on the chips solely to train its home-grown generative model, Grok.
Anthropic entered into a cloud services agreement with SpaceX worth $1.25 billion a month through 2029. The deal provides Anthropic with access to compute capacity across SpaceX's supercomputers, Colossus and Colossus II, which feature roughly 325,000 Nvidia GPUs.
Meanwhile, Google Cloud committed $920 million a month for access to roughly 110,000 Nvidia GPUs, CPUs, memory, and related networking kits through the middle of 2029. Most recently, Reflection AI signed a multiyear deal worth up to $6.3 billion to access Nvidia GB300 chips at a reported $150 million per month.
Why I think Nvidia is the better buy over AMD
For SpaceX and Tesla, Musk sided with the established leader in the chip industry. I think the numbers line up with that choice.
Nvidia boasts a market cap of roughly $5.3 trillion, while AMD hovers around $830 billion. During the second quarter, Nvidia's data center revenue reached $89 billion -- up 117% year over year. AMD, on the other hand, generated $6.7 billion in sales from its data center segment -- an increase of 107% year over year. While AMD is demonstrating strong growth, it's off a much smaller base relative to Nvidia. Meanwhile, Nvidia is growing faster and at a size AMD isn't even close to reaching.
Valuation makes the comparison between the chip rivals even sharper. Nvidia trades at a forward price-to-earnings (P/E) ratio around 23. AMD trades at a much richer multiple at roughly 67 times forward earnings. In other words, investors are paying nearly triple for AMD's next dollar of earnings even though Nvidia clearly owns the software stack, the rack-scale systems, and the customer list that includes two empires run by the world's richest person, Elon Musk.
None of this means AMD will disappear. Hyperscalers will keep dual-sourcing and MI400 will continue getting design wins. But from my view, Musk does not appear to be experimenting with the No. 2 chip for his rockets, satellites, and AI factories. Instead, he is doubling down on the platform he's trusted for years. I think this is a good reason for an investor to do the same.
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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
Adam Spatacco has positions in Alphabet, Amazon, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool has a disclosure policy.

Nvidia vs. AMD: Elon Musk Picked a Side on the SpaceX Earnings Call

Key Points
Broadcom’s AI semiconductor revenue jumped 221% year over year as demand for custom chips accelerated.
Nvidia’s AI growth is broadening beyond hyperscalers.
Custom chips could pressure Nvidia in some inference workloads while creating a major new growth opportunity for Broadcom.
Broadcom (NASDAQ: AVGO) and Nvidia (NASDAQ: NVDA) both benefit from the global artificial intelligence (AI) infrastructure build-out. Broadcom is helping large customers build custom chips for specific workloads, while Nvidia sells a broader computing platform that can serve many customers and use cases.
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 »
Broadcom's recent growth is impressive. AI semiconductor revenue jumped 221% year over year to $16.7 billion, accounting for 56% of the company's total revenue in fiscal 2026's Q3 (ended Aug. 2). Management now expects AI chip revenue of $115 billion in fiscal 2027 and $230 billion in fiscal 2028.
Nvidia is growing from a much larger base. The company's revenue surged 106% year over year to $96.2 billion, while Data Center revenue jumped 117% year over year to $89 billion in fiscal 2027's Q2 (ended July 26).
Broadcom benefits from one of Nvidia's biggest risks
Some large AI companies are developing custom chips to reduce computing costs and optimize inference workloads (i.e., running AI models in production environments). OpenAI's Jalapeño chip, co-developed with Broadcom, is one example. According to Reuters, OpenAI developed the chip partly to reduce its reliance on Nvidia GPUs and lower operating costs. OpenAI said that Jalapeño was built specifically to run large AI models more efficiently and is planned for deployment across very large data centers.
Hence, a shift toward custom accelerators could pressure Nvidia's share of inference computing while directly creating additional revenue opportunities for Broadcom.
The threat is most direct among hyperscalers, which have the scale and resources to develop custom chips. However, Nvidia's growth is becoming broader. Revenue from its AI cloud, industrial, and enterprise customers jumped 138% year over year in the second quarter, faster than the 102% year-over-year growth in its hyperscale business.
Nvidia is expanding rapidly beyond the large customers that are most capable of designing their own chips. Additionally, Nvidia traded at roughly 14.4 times forward one-year earnings, compared with about 18.8 times for Broadcom (as of Sept. 10).
Hence, Nvidia offers greater AI scale, broader customer exposure, and a more reasonable valuation.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, 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 Broadcom 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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Better AI Chip Stock: Broadcom vs. Nvidia

Key Points
Nvidia says that its forecast for the next fiscal year is supply-constrained, not demand-constrained.
The 70% revenue target is what management believes Nvidia can confidently deliver given current supply chain dynamics.
Nvidia stock could move considerably higher over the next year, and its valuation multiples wouldn't even need to expand.
So far this year, Nvidia (NASDAQ: NVDA) stock has put up a solid but unspectacular 17.3% gain. That sounds decent until you remember its performance during earlier innings of the artificial intelligence (AI) revolution, when shares were routinely doubling or tripling in a calendar year.
Nvidia's rocket-ship phase has cooled due to a mix of things: growing competition from custom silicon at the major cloud players, lingering questions about whether hyperscaler capital expenditures (capex) can stay this aggressive, the law of large numbers, and some trepidation around circular financing deals.
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 »
It seems like investors are no longer willing to pay a premium in the same way they did when every quarter felt like the start of another exciting chapter. Yet the setup beneath Nvidia's quiet price action looks much more interesting than you might expect.
The company just gave a full-year-ahead forecast for the first time, and the number was big enough to make skeptics do a double-take. Let's break down why Nvidia stock may be quietly loading for a sizable move heading into calendar year 2027.
Nvidia's growth is all about supply, not demand
Nvidia's fiscal 2028 guidance calls for approximately 70% revenue growth. For context, this is well above what Wall Street had been modeling and puts the company on a path toward $700 billion in sales. CEO Jensen Huang was unquestionably direct about why Nvidia chose this number: Customer demand is pointing toward higher implied growth than 70%, but this level is simply what the supply chain can confidently deliver.
Memory shortages and other critical component bottlenecks are the binding constraint in building AI factories, not a lack of orders for graphics processing units (GPUs). In other words, 70% is the company's conservative, supply-limited plan. If more wafers and memory become available, Nvidia's actual numbers could easily run higher.
Why Nvidia may outperform its own guidance next year
Two engines are running hotter than Nvidia's official outlook implies. First, capex for the top five hyperscalers -- Amazon, Alphabet, Microsoft, Meta Platforms, and Oracle -- is estimated to land around $800 billion this calendar year and $1.3 trillion in 2027. Nvidia already captures a healthy slice of this spend, and its next-generation Vera Rubin platform should allow it to take even more as big tech's budget gets deployed.
At the same time, the company's ACIE customers -- AI clouds, industrial customers, and sovereign enterprises -- are starting to grow even faster than the hyperscaler side of the business. During the second quarter, the ACIE segment delivered 25% sequential growth (versus 13% from the hyperscale cloud providers) and now represents roughly half of data center revenue. This mix shift is giving Nvidia a broader, less concentrated customer base.
In addition, new use cases are starting to consume GPUs in ways that were considered science fiction just a couple of years ago. Agentic AI workloads require far more inference and reasoning horsepower. Nvidia's new Vera central processing units (CPUs) are designed exactly for this purpose.
Moreover, space exploration is moving from theories depicted in slide decks to actual hardware sales, with talk of orbital data centers and on-orbit inference. Robotaxi fleets from Alphabet and Tesla are also moving from pilot to scaled deployment, and every one of those vehicles is essentially a rolling cluster of GPUs on wheels.
For now, these opportunities represent incremental demand that could easily push Nvidia's performance past the official target as these applications reach large-scale deployment.
What could Nvidia stock be worth by January 2028?
Wall Street's consensus earnings per share (EPS) estimate for Nvidia's fiscal 2028, which ends in January of that year, sits at $15.52. This implies 67% growth compared to this year's EPS target of $9.31. Throughout the AI revolution, Nvidia's forward price-to-earnings (P/E) ratio has averaged 33. If I took a 25% haircut off that average to better reflect a larger, more mature company, that leaves you with a 25x forward P/E multiple. This is roughly where Nvidia trades today.
If I apply that multiple to the $15.52 estimate, then Nvidia stock lands around $388 a share. If Nvidia's multiple expands back toward its average, then shares would be worth closer to $512. From today's price of $225, this implies gains of between 72% and 127% by the time fiscal 2028 earnings are in the rearview mirror.
Here's the subtle takeaway: Nvidia's earnings power is large enough to produce a very different stock price even if its valuation multiple doesn't expand at all. Against this backdrop, the muted price action of 2026 may turn out to be a temporary pause before the next leg up. For this reason, I think Nvidia looks like a no-brainer stock to buy hand over fist right now, as meaningful gains appear to be on the horizon.
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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
Adam Spatacco has positions in Alphabet, Amazon, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: Nvidia Stock Could Be Worth This Much by January 2028

Key Points
Agentic AI refers to automated systems powered by AI that largely act independently to carry out tasks.
Many AI bulls believe agentic AI will change the way we all work.
Agentic AI is most efficient when it utilizes central processing units (CPUs), a business Nvidia has recently launched in a big way.
Artificial intelligence (AI) has come on fast and furious.
Just four years ago, it felt like people were trying their first large language model (LLM). Now, AI is everywhere, and it still feels like the world hasn't come close to fully tapping its potential.
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 »
Few are more bullish on artificial intelligence than Nvidia (NASDAQ: NVDA) CEO Jensen Huang, who regularly talks about the future of AI. One aspect of AI that Huang has been discussing in particular is agentic AI, or autonomous systems capable of performing human-like digital tasks.
AI agents have soared in popularity. Huang thinks they will soon be quite common in the workplace.
Agentic AI will soon be our sidekicks
On Nvidia's latestearnings call Huang said he has seen an inflection point rapidly approaching, in which the bulk of AI will shift from being prompted by people to being prompted by AI agents. People are already using agentic AI to automate workflows.
Today, the vast majority of AI is prompted by people. I believe that this last month, it has crossed. Most AI are now agentic. But in the future, every company will have a whole bunch of agents. We have 40,000 employees, roughly. In the future, we'll have 400,000 agents, 4 million agents. And those agents are running continuously. They're running in the background.
Just as the internet transformed how we work today, AI can take it a step further. Workers can already use agents to summarize their emails or Slack threads, organize folders, generate automated responses to frequent questions, conduct deep research, and much more.
Now, in light of what recently happened with OpenAI and the open-source AI community Hugging Face, in which a bunch of rogue agents escaped a confined testing space and launched a cyberattack on Hugging Face, I am sure (or at least I hope) companies will be cautious about how much access they give agents, because there are cybersecurity risks.
But companies will inevitably be tempted to automate as much as possible, which could lower expenses by making people more efficient.
It's also likely to enable people to get more done in less time, so there's going to be a push and pull between the desire to use agents and the need to maintain proper security measures.
Huang is backing up his words with action
Huang is not just discussing agentic AI to drum up more excitement about AI.
Nvidia is making a big investment in agentic AI through its recently released Vera central processing unit (CPU), designed specifically for running agents. CPUs, the chips that power legacy devices such as laptops and phones, have come back into fashion thanks to agentic AI.
Graphics processing units (GPUs) are the main general-purpose chips that power the reasoning component of AI and allow AI models to explore many solutions simultaneously.
While GPUs are still responsible for this component of agentic AI, CPUs are critical to carrying out the tasks the AI triggers, whether that involves accessing files, browsing the web, or managing workflow orchestration.
Nvidia surprisingly launched its Vera CPUs last quarter, boasting that they were 1.8x faster than industry standards and had 5 times the bandwidth per watt of any other data center CPU.
Management also reiterated that it still sees $20 billion in potential revenue from Vera CPUs in its current fiscal year, with the potential to more than double that number in fiscal year 2028. This instantly makes the company one of the leading suppliers of CPUs.
Analysts at Bank of America also released a research report in June, saying they believe the CPU market will grow fivefold between this year and 2030, from $35 billion to $170 billion.
It's never clear what the future holds, but everything Huang has said and the actions Nvidia has taken show they are extremely bullish on agentic AI.
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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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.
Bank of America is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

40,000 Employees Today and 4 Million Agents Tomorrow: Nvidia CEO Jensen Huang Believes Agentic AI Will Soon Become the Norm in the Workplace

Key Points
Taiwan Semiconductor expects strong growth for the rest of 2026 and 2027.
Apple stock is expensive considering the company's lackluster growth.
Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) have been partners for a long time. Their relationship is pretty simple: Apple designs the chips, then gives those designs to Taiwan Semiconductor to manufacture. This relationship has worked out well over the past few years, and has allowed Apple to become one of Taiwan Semiconductor's largest clients.
But based on the stocks' valuations and how each company expects to grow, I think only one of them is a smart buy right now.
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 »
Apple's new chip uses Taiwan Semiconductor's most advanced technology
Apple's new A20 Pro chip appears in its newly launched iPhone 18 Pro and Pro Max, as well as its new folding smartphone, the iPhone Duo. The biggest advancement of this chip is that it uses Taiwan Semiconductor's cutting-edge 2-nanometer (nm) chip production process versus the last generation's 3nm process. This packs more transistors onto a chip in a tighter area and delivers better computing power while reducing energy consumption. That's a win-win for device users, but what about the stocks?
Apple's business is fairly focused: It aims to provide the world's best consumer tech hardware. It has long accomplished that goal with leading smartphones and laptops, but one area where it has clearly fallen behind its peers is in artificial intelligence (AI). Sure, there could be some debate as to the usefulness of some of its competitors' AI features. Still, Apple Intelligence has thus far not lived up to the hype, which could be a problem in the coming years as AI features become more popular and advanced.
Prior to the AI infrastructure build-out, Apple was consistently Taiwan Semiconductor's largest customer, but surging demand for data center GPUs has changed the picture. In 2023, 2024, and 2025, one client (largely assumed to be Apple) made up 25%, 22%, and 19% of TSMC's sales, respectively. TSMC's second-largest customer made up 11%, 12%, and 17% of revenue in those years, and that's widely assumed to be Nvidia (NASDAQ: NVDA). But according to various media reports and Nvidia CEO Jensen Huang, Nvidia recently overtook Apple as TSMC's top client due to the accelerating AI infrastructure build-out. With heavy data center construction expected to last for several more years, Apple may take a back seat to Nvidia with the foundry giant, which could also cost Apple some bargaining power.
Apple is a case of a company not embracing AI right now, while Taiwan Semiconductor is running toward it. I think that puts TSMC in a better position moving forward, and it's already showing up in its growth rate.
Taiwan Semiconductor looks like the far better buy
In 2026, Wall Street analysts expect Taiwan Semiconductor's revenue to grow at a 43% pace in New Taiwan dollars. In 2027, that figure is expected to be 34%. Apple isn't even close, with this year's expected revenue growth to be about 15% and next year's at 10%. One factor that might change this is a subscription AI model from Apple; that could provide its financials with an instant boost. But it may have lost that race already, as there are several great AI options available for iPhone users.
With Apple growing more slowly and maybe missing out on the chance to capitalize on one of the biggest technological revolutions of our time, TSMC looks to be a far better buy. When you take a look at their stock valuations, this hypothesis is confirmed.
Despite Apple's less energetic growth outlook, it trades at a massive premium to Taiwan Semiconductor.
With TSMC expected to outgrow Apple next year and trading at a lower valuation, I don't think there's really much of a debate as to which stock is the better buy. Taiwan Semiconductor is a far better investment than Apple right now, and I think investors will be very happy if they purchase TSMC instead of Apple over the next few years.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing 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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.

Apple and Taiwan Semiconductor Manufacturing Just Announced a Cutting-Edge Chip. 1 Stock Offers Far Greater Upside.

What separates a capable CEO from a great one? It’s not just vision or great timing. When you look closely at the architects of some of the biggest businesses, distinct patterns of greatness begin to emerge. Four Fools — two from Team Rule Breakers, two from Team Hidden Gems — each named one CEO they believe best exemplifies this rare tier of leadership.
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 »
None of these CEOs shares the same playbook. Yet, beneath their varying styles, all share something in common: ruthless execution, fanatic focus on moats, and the conviction to make big, contrarian bets.
Value in the Cloud(flare)
Cloudflare (NYSE: NET) co-founder and CEO Matthew Prince is not one to keep his opinions to himself. He is often seen as a polarizing figure in the tech world. I see him as a passionate leader who believes deeply in Cloudflare’s potential.
Here’s a fun fact: Prince wrote his first computer program at the ripe old age of seven! So, to say tech is in his blood would be an understatement. That early spark eventually led to 2009, when Prince teamed up with colleagues Michelle Zatlyn and Lee Holloway to found Cloudflare with the mission “to help build a better internet.”
One thing that stands out is Prince’s forward-thinking and competitive drive. He reminds me a lot of Jeff Bezos, as he’s equally relentless in his pursuit of the company’s mission.
Prince owns 75% of the company’s class B shares, giving him 39% total voting power. We Fools love to see leaders with skin in the game. It doesn’t mean an investment will always work out, but it signals leadership’s incentive to steer the business in the right direction. So far, it’s working out well for long-term owners of the stock; shares are up over 1,500% since its IPO in September 2019.
Adaptability Is Core to Greatness
Adaptability is necessary for longevity, and a long, effective tenure is essential for greatness. Ted Sarandos has helped create many millionaires in his 26 years at Netflix (NASDAQ: NFLX).
He spent the first 20 years leading Netflix’s content operations, and he’s been co-CEO for the last six years. Four major strategic shifts have defined Netflix under Sarandos:
From bulk DVD by mail to streaming licensed content.
From streaming licensed content to producing original content, ushering in “binge watching” in the process.
From a regional U.S. streamer to a global provider with content in local languages.
From subscription-only to on-demand streaming subscription plus ads, including live events.
Netflix has faced dire competitive threats at every stage of its life. Sarandos has been around for most of them, and he’s on the hook again now.
Competition for attention has never been greater. It’s possible we’ll see another Sarandos-led Netflix pivot in light of this. If so, it would be fitting.
Ted Sarandos has adapted faster and more frequently than most of his peers in the entertainment industry when under threat. That’s what makes him great, and I expect him to prove it again.
A Steady Hand in Any Market
Michael Kehoe left a stable job as CEO of James River Insurance (a predecessor of James River Group (NASDAQ: JRVR)) because he saw an opportunity to use technology to reboot the insurance industry. He traded near-term stability for start-up chaos, betting that his conviction would pay off in the long term. It is a mindset that continues to guide Kinsale Capital Group (NYSE: KNSL) 17 years after its founding.
The numbers speak for themselves: Kinsale shares are up 1,870% since its 2016 IPO. (For the record, James River is down 88% during that time.) Kehoe built Kinsale by moving at his own pace, not the pace demanded from an established incumbent, and by thinking in terms of decades instead of quarters.
The mindset continues to this day. Kinsale is down 20% over the last year. A period of rising rates and few hurricanes or other natural disasters has led to a flood of insurer interest in Kinsale’s niche. Kehoe has refused to fight pricing battles, and as a result, new business has slowed.
As a shareholder, I hate to see my stock underperform. But I believe Kehoe’s strategy will pay off in the long term, and I have nearly two decades of results to back up that belief. No one plays the long game better than Mike Kehoe.
The Visionary Architect
When discussing leaders who prioritize decades over quarters, Jensen Huang of Nvidia (NASDAQ: NVDA) stands in a league of his own.
For years, he directed resources toward accelerated computing and AI architecture long before the rest of the world realized its potential. This was not a gamble on a trend but a fundamental belief in the future of computing. He has successfully navigated market cycles by focusing on a singular, massive vision.
Huang’s mastery of the long game is evident in how he builds ecosystems rather than just products. By creating a software layer that developers rely on, he has built a moat that’s incredibly difficult to cross.
Foolish Final Thoughts
Did you notice a pattern? Four leaders, one phrase circled again and again: decades over quarters. Three founded the companies they run; the fourth has spent 26 years at his. Each placed a bet long before the payoff arrived, then held it while the doubters got loud.
Which CEO would you add to this great lineup, and what’s their claim to greatness?
Debate with friends and family, or become a member to hear what your fellow Fools are saying!
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 942%* — a market-crushing outperformance compared to 211% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of September 12, 2026.
Jason Moser has positions in Cloudflare. Lou Whiteman has positions in Cloudflare and Kinsale Capital Group. Rachel Warren has no position in any of the stocks mentioned. Tim Beyers has positions in Netflix. The Motley Fool has positions in and recommends Cloudflare, Kinsale Capital Group, Netflix, and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Breakfast News: 4 CEOs Playing the Long Game

Key Points
Over the last 15 years, Apple reduced its share count by 43.2% under CEO Tim Cook.
Apple could make more aggressive investments in expanding its hardware ecosystem under new CEO John Ternus.
Nvidia is committed to returning half of its free cash flow to shareholders through buybacks and dividends.
Over his 15-year tenure as CEO, Tim Cook grew Apple (NASDAQ: AAPL) from a market cap of around $350 billion to well over $4 trillion. The strategy was fairly straightforward.
Apple regularly releases new versions of its winning products like iPhone, Mac, and iPad; penetrates a few key product categories in wearables and headphones/earbuds; and expands its services (like app store revenue, advertising, iCloud, Apple Music, Apple TV, Apple Pay, etc.) to complement its hardware ecosystem.
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 strategy unlocked steadily rising profits and free cash flow (FCF), which Apple used to reinvest in its core business, grow its dividend, and buy back gobs of its own stock.
For years, Apple has had by far the largest buyback budget of any U.S. company. But that all could change under new CEO John Ternus.
Apple is reducing buybacks even as earnings growth accelerates
Cook's specialty was operations, but Ternus served as vice president of hardware engineering before becoming CEO. Hiring Ternus as CEO sends a clear signal to Wall Street that Apple is gearing up for a period of innovation rather than relying on its growing services network, marginal product upgrades, and stock buybacks to fuel earnings growth.
Even under Cook's leadership, Apple has already been pulling back on buybacks as it geared up for major product upgrades and new releases discussed during Apple's latest Sept. 9 event.
As you can see in the chart, Apple's trailing-12-month buybacks peaked at $100 billion but have since declined to $82.2 billion. Meanwhile, Nvidia's (NASDAQ: NVDA) buybacks have been surging in lockstep with its FCF, while major tech stocks like Microsoft, Meta Platforms, and Alphabet -- which used to be buyback leaders -- have since pulled back in buybacks as they invest heavily in artificial intelligence (AI).
For years, Apple's services sales were growing faster than its product revenue. But that trend has changed, as Apple reported its best third quarter in five years on July 30, which included an 18.1% year-over-year increase in product sales.
Granted, some of that jump could have been due to consumers anticipating price increases in response to rising memory chip costs. But it's still encouraging to see Apple's earnings growth pick up after years of sluggish results.
Nvidia's capital return program has room to run
Under Ternus, I'd expect Apple to continue paying sizable, albeit lower, buybacks while also reinvesting more capital in the business to grow its product portfolio. Meanwhile, Nvidia looks well-positioned to continue expanding its capital return program.
In its latest quarter, Nvidia spent $19.73 billion on buybacks and $6.05 billion on dividends after raising its dividend by 2,400% earlier this year. Meanwhile, Apple repurchased $25.95 billion in stock and spent $4 billion on dividends in its latest quarter. Apple has increased dividends every year since 2012, but it tends to make very small mid-single-digit increases.
On its Aug. 26 earnings call for the second quarter of fiscal 2027, Nvidia said it returned 60% of FCF to shareholders so far this fiscal year, ahead of its 50% guidance. But even if Nvidia reverts to closer to 50% and continues to grow its dividend, it could still easily surpass Apple in buybacks.
Nvidia began shipping products under its latest Vera Rubin platform in August -- which falls under Q3 fiscal 2027. Nvidia expects Rubin to make up a staggering 20% of Q3 data center revenue. The run-up for Rubin is so massive that Nvidia is guiding for a 70% year-over-year increase in fiscal 2028 revenue. And if Nvidia converts a similar amount of that revenue to FCF, meaning its FCF also increases by 70%, it will likely surpass Apple in buybacks next year, even if Apple keeps its buybacks steady.
Nvidia's No. 1 priority is its organic growth. However, it's raking in so much FCF that it can hit that goal while leaving plenty of cash left over to return to shareholders.
Nvidia is a better value than Apple
Over the last few years, Apple has resembled a bit more of a consumer staples stock than a tech stock, while Nvidia has been a hypergrowth stock. Under Ternus, I could see Apple becoming more growth-oriented. Whereas Nvidia is evolving into a dividend growth stock at a great value -- as Nvidia trades at just 24.3 times earnings compared to 35.8 for Apple.
Apple's premium valuation has been built around its reliability -- not its growth rate, similar to how Walmart and Costco Wholesale trade at elevated multiples due to their loyal customer bases and resilience in recessions. But if Apple shifts to a more growth-oriented capital allocation strategy, that will put pressure on the company to justify its higher multiple with accelerated earnings growth.
Apple isn't cheap, but it remains a decent stock to buy and hold for investors who believe it can live up to expectations. However, Nvidia could ultimately prove to be the better long-term value, especially for investors seeking a company with a capital return program likely to grow.
Should you buy stock in Apple right now?
Before you buy stock in Apple, 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 Apple 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 $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% 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 September 12, 2026.
Wells Fargo is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Costco Wholesale, JPMorgan Chase, Mastercard, Meta Platforms, Microsoft, Nvidia, Visa, and Walmart. The Motley Fool has a disclosure policy.

Prediction: Nvidia Will Overtake Apple in Stock Buybacks and Dividends Under New Apple CEO John Ternus

Key Points
Nike's turnaround is progressing at a sluggish pace.
The current operating environment remains challenging, as Nike doesn't have a clear path to return to growth.
Alphabet replacing Verizon in the Dow makes Nike the lowest-weighted component.
S&P Global (NYSE: SPGI) announced that Nike (NYSE: NKE) will be removed from the S&P 100, effective Sept. 21, as part of its quarterly rebalancing. Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive will also be removed, while Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk will be added.
Here's why Nike is being removed from the S&P 100, whether it presents an ominous warning for its potential deletion from the Dow Jones Industrial Average (DJINDICES: ^DJI), and whether the blue chip dividend stock is a good buy now.
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 »
Justifying Nike's S&P 100 removal
The S&P 100 isn't the 100 largest S&P 500 (SNPINDEX: ^GSPC) components by market cap. Rather, it's a curated sector that represents blue chip companies across stock market sectors and industries with a focus on megacap and large-cap behemoths.
Nike has remained in the index due to its industry leadership, not its size. Nike is now the 213th-highest-weighted company in the S&P 500. It's also the lowest-ranked component in the iShares S&P 500 100 ETF -- which uses the S&P 100 as a benchmark.
Nike's removal makes sense given that its stock price continues to fall and its industry leadership isn't what it used to be. What's more, Dell, Palo Alto, Arista, and Sandisk have all gone up so much that they are all in the top 50 in S&P 500 components by market cap. Nike's industry leadership premium no longer justifies its inclusion in the S&P 100 over companies that are worth several times more and contributing to the S&P 500's gains, whereas Nike has been a drag on the index.
As you can see in the chart, Nike is at its lowest level in more than a decade, with revenue and earnings down in recent years and operating margins plummeting from the low- to mid-high teens pre-pandemic to under 9% today. There's a laundry list of issues at Nike, including supply chain and corporate strategy blunders, slowing growth in China, tariffs, domestic consumer spending pressures, and increased competition from formidable rivals.
Even with these issues, it's important to remember that investors care more about where a company could be headed than where it has been. Investors may take one glance at the stock's price action and assume Nike is a no-brainer buy. But Nike hasn't returned to growth, and its runway for doing so is shrouded in dense uncertainty.
As part of its Win Now turnaround plan, Nike has implemented cost cuts and changed its strategy to better balance wholesale and direct-to-consumer. For fiscal 2026, which ended on May 31, wholesale revenue grew 4% year over year, with double-digit growth in North America. But many of the challenges that weighed on the business remain -- namely, competition, current operating trends in consumer discretionary spending, and the China slowdown.
Better Dow candidates
With Alphabet replacing Verizon Communications in the Dow this past June, Nike is now the lowest-ranked component in the price-weighted index -- putting it on the hot seat for the next stock most likely to be replaced. With just 30 components, the Dow is more exclusive than the S&P 100, Nasdaq-100, or the S&P 500. The Dow has become increasingly tech-stock-focused in recent years to reflect the evolving economy -- adding Nvidia and Amazon in 2024, and now Alphabet this year. However, there are massive companies that could muscle their way into the Dow, such as Broadcom, Meta Platforms, Tesla, Space Exploration Technologies, or maybe even Tesla and SpaceX combined if they merge.
Although the Dow has traditionally included industry-leading dividend-paying companies, the dividend-paying aspect of the criteria seems to carry less weight today than in years past, as Alphabet and Nvidia both yield less than 0.5%, and Amazon doesn't even pay a dividend.
Nike has raised its dividend for 24 consecutive years and yields a sizable 4.3%. But that payout could be under pressure if Nike's dividend expense begins to absorb too much of its free cash flow.
Nike will be removed from the Dow
Nike could be a good buy for investors who are confident in its brands and management's ability to execute a successful turnaround. And if the broader stock market were selling off, perhaps Nike would be given more grace.
But the major indexes, including the S&P 500 and the Dow, are hovering around all-time highs -- shortening the leash for underperforming stocks like Nike, especially now that it is closer to the median S&P 500 component weight and makes up a mere 0.4% of the Dow.
At this point, I think it's only a matter of time before Nike is removed from the storied Dow Jones index. And most investors may be better off waiting for concrete signals of a sustained turnaround before buying the stock.
Should you buy stock in Nike right now?
Before you buy stock in Nike, 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 Nike 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 $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% 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 September 12, 2026.
Daniel Foelber has positions in Broadcom, Nike, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Arista Networks, Broadcom, Colgate-Palmolive, Honeywell Aerospace, Meta Platforms, Nike, Nvidia, S&P Global, and Tesla. The Motley Fool recommends Palo Alto Networks and Verizon Communications. The Motley Fool has a disclosure policy.

Nike Is Being Deleted From the S&P 100. Is Its Seat in the Dow Jones Industrial Average in Jeopardy?

Key Points
Nvidia is expanding its growth opportunities by investing in other AI companies and by launching more powerful products.
Wall Street expects revenue to increase 80% this year, and management is guiding for 70% next year.
Nvidia stock trades at a high price-to-sales ratio, and it's likely to come down.
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 »
Nvidia (NASDAQ: NVDA) stock has returned to outperforming the market, up 24% year to date versus a 14% gain for the S&P 500.
But what investors really want to know is whether or not Nvidia can continue to outperform the market, and if it makes sense to buy its stock today. While no one knows what the future will bring, there are ways to evaluate its business and prospects as well as signals about market sentiment.
For example, management provides guidance for near-term growth, and Wall Street analysts model growth expectations based on internal and external factors. Based on some of these projections, here's where Nvidia stock could be at the end of 2027.
Nvidia is expected to keep up high growth
Nvidia blasted past estimates and management's guidance in the company's 2027 fiscal second quarter, delivering 106% sales growth. Artificial intelligence (AI) development continues to expand at accelerating rates, and Nvidia's graphics processing units (GPU) are a critical piece of the process.
The company is launching new, more powerful chips and expanding its stake in AI by rolling out products that integrate with its ecosystem, creating high barriers to entry for competitors. It's also acquiring smaller businesses and providing funding for other AI players. For example, it just announced that it's acquiring AI platform Hugging Face for $12.9 billion, and Nvidia invested $2 billion in CoreWeave this year on top of earlier investments. That increases its exposure to AI growth, expands its addressable market, and has helped accelerate revenue growth.
Wall Street expects Nvidia revenue to increase 80% this year and 63% next year. In the second-quarterearnings call though, CFO Colette Kress said that Nvidia expects to grow 70% next year, or fiscal 2028.
Using Wall Street's estimate for 2026 (fiscal 2027) and management's guidance for next year (fiscal 2028), Nvidia revenue would be $699.3 billion at the end of 2027. Using a price-to-sales ratio of 17, below today's 19, Nvidia would reach a market cap of 11.9 trillion. That's a 113% increase from today's, and the stock would reach $490. At a lower ratio, say 15, it would be nearly $10.5 trillion, an 89% increase.
The average Wall Street target price is 38% higher than today over the next 12 to 18 months, with a high 0f 208%.
Can Nvidia truly reach those highs in such a short time? If so, it would be a strong buy today.
In general, Nvidia stock does usually spike after its earnings reports as revenue jumps, as seen in this chart, but not always.
Despite what's likely to be fantastic growth over the next two years or so, the stock may not gain quite as much as the expected growth rates and valuation multiples today imply. Management's 2027 guidance boosted market confidence about continued high growth after the second-quarter report, but the market has been concerned about competition, external AI developments, and potential deceleration. The price-to-sales ratio continues to decline, too. Over the next year or so, Nvidia stock could fall or gain much more modestly if growth slows and the valuation comes down.
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 $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% 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 September 12, 2026.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.