Cantor Fitzgerald Reiterates Neutral on Texas Instruments, Maintains $340 Price Target

Nvidia's $13 Billion Hugging Face Deal Expands Open-Source AI

Nvidia announced a $12.9 billion acquisition of Hugging Face, a major open-source AI platform with 18 million users and 3 million models. The deal, expected to close in 2027, aims to strengthen Nvidia's AI ecosystem and drive demand for its computing infrastructure as competitors develop their own AI chips. Nvidia's stock gained 1.8% following the announcement.

Nvidia Sells the Brains of the AI Boom. Something Else Is Selling the Muscle -- and It's Not on Wall Street's Radar.

While Nvidia dominates AI chip sales, an overlooked opportunity exists in 800-volt power distribution equipment for data centers. This technology offers ~10% cost savings over conventional power supplies and is being developed by companies like Vertiv and Nvidia. Though the transition could take years given the industry's $700 billion annual AI infrastructure spending, this emerging sector presents significant long-term potential.

Shares of semiconductor companies are trading lower as inflation concerns and elevated oil prices push U.S. and global bond yields higher, raising concerns that the Federal Reserve could tighten monetary policy later this month. Higher rates can weigh on growth stocks by making future profits less attractive.

Shares of semiconductor and chip companies are trading lower, possibly after Federal Reserve Chairman Warsh's comments on inflation and prices raised rate-hike concerns. The sector may be facing pressure from peer Marvell Technology, as the company pulls back after its FY28 guidance may have failed to meet investor expectations.