SANTA CLARA, California, September 3, 2026, 11:52 (EDT) – Nvidia (NVDA.O) shares advanced 1.4% following its agreed $12.93 billion purchase of Hugging Face, pricing the deal at 86 times the AI startup’s annual revenue.
- NVIDIA has reached an agreement to acquire Hugging Face for $12.9303 billion.
- By 11:52 EDT, the shares were up 1.4% at $227.48.
- The price is roughly 86 times the reported annualized revenue.
NVIDIA Corporation (NASDAQ:NVDA) shares increased 1.4% to $227.48 as of 11:52 EDT on Thursday. The advance came after the company’s $12.9303 billion deal to buy Hugging Face Yahoo Finance.
The valuation represents roughly 86 times Hugging Face’s reported annualized revenue of $150 million. The revenue figure is not from an official company filing. The move highlights that NVIDIA is prioritizing influence over immediate sales Reuters.
Hugging Face’s platform brings NVIDIA nearer to developers when selecting models and compute solutions. This access is significant with major clients creating their own chips to lessen reliance on NVIDIA Reuters.
NVDA regular-session path
U.S. dollars per share;
Source: Yahoo Finance. Five-minute observations; final point uses the quoted 11:52:24 EDT price.
The SEC filing divides the deal into two parts. Roughly $11.9 billion is allocated to shareholders, while as much as $1 billion is set aside for employee retention.
The companies anticipate the transaction will close in the first half of 2027. The deal is still subject to regulatory approvals and standard closing conditions.
What $12.9303 billion represents
Sources: Reuters and NVIDIA’s July 2026 Form 10-Q. Revenue is a reported estimate.
NVIDIA is able to complete the acquisition without affecting its financial standing. As of July, it had $56.586 billion in cash and marketable debt securities. GAAP net income for the second quarter totaled $59.688 billion Form 10-Q.
West Monroe’s chief AI officer, Bret Greenstein, described the investment as “a strong strategic hedge against the different ways AI could evolve” Associated Press.
The developer distribution layer NVIDIA is buying
Source: NVIDIA acquisition announcement, September 3, 2026.
NVIDIA said the platform has over three million models and one million applications, with more than 200,000 companies making use of it. The numbers highlight the rationale for the strategic premium.
Chief Executive Jensen Huang committed to maintaining Hugging Face as an open platform. He stated that NVIDIA hardware would not be mandatory. The filing further outlines plans to support additional silicon vendors.
Current sell-side view
Source: Google Finance, 30-analyst summary and 12-month targets, viewed September 3, 2026 at 11:48 EDT.
Analysts all rate the stock a buy, but their price targets vary significantly. The lowest estimate, at $250, stands just 9.9% higher than Thursday’s closing price. The consensus average suggests potential gains of around 44.8%.
Risks: Regulators may postpone or prevent the transaction. Additional regulations could limit open models or the use of datasets from abroad. NVIDIA is also required to maintain platform neutrality as it merges staff and systems.
The next official milestones include regulatory assessments and the targeted closing in the first half of 2027. Investors will further assess if activity on the platform translates into increased compute demand.
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