Nvidia Shares Gain 1% After $1 Billion Naver Agreement Grows Sovereign-AI Project Pipeline

Nvidia ended trading on Friday, July 24, at $206.84, down 0.92%, with 114.7 million shares changing hands. The stock is currently 12.6% below its 52-week peak of $236.54. Market capitalization stands near $5.05 trillion, with a trailing price-to-earnings ratio of 31.5. Each 1% shift in share price now moves about $50 billion in market cap. NVIDIA Investor Relations

The Wall Street Journal said discussions are underway for a financing guarantee of about $250 billion. This guarantee is intended to back a 10-gigawatt project in Ohio with a total cost exceeding $500 billion. The outlet also referenced talks involving as much as $350 billion in chip financing. Reuters could not confirm the report, and the parties declined to comment immediately. Such a deal might ensure chip demand but leave Nvidia facing significant financing exposure. No agreement has been finalized. Reuters

SK Group and Nvidia unveiled an AI project with a total value topping $500 billion. The venture will include a two-gigawatt complex featuring Rubin chips and HBM4 memory, with the initial facility expected in 2027. Nvidia intends to purchase $1 billion worth of new Naver shares, acquiring a 4.5% stake. Brookfield is considering supplying $9 billion to fund a 200-megawatt Naver expansion targeted for completion by 2028. The headline figures refer to the scale of the undertaking and do not represent Nvidia’s stated revenues. Any immediate earnings effect is likely to remain limited. Reuters

Microsoft and Meta are set to report results on Wednesday, July 29, after the close of trading. Amazon and Apple will announce earnings on Thursday, July 30. Qualcomm delivers its report this week as well. Investors are watching AI capital expenditures, cloud capacity, and budget plans for 2027. According to Reuters, one in three S&P 500 companies issue results this week. Overall earnings are showing 26.5% year-over-year growth. Enhanced spending plans could benefit Nvidia, while reductions might weigh on the stock. Meta

Nvidia projects fiscal second-quarter revenue at $91.0 billion, with a possible 2% variance, putting the official outlook between $89.18 billion and $92.82 billion. The midpoint signals a sequential increase of 11.5% compared to first-quarter revenue. The company expects a GAAP gross margin of 74.9%, with a potential swing of 0.5 points. The guidance does not include any Data Center compute revenue from China. Nvidia will release its results on August 26. NVIDIA Investor Relations

Revenue for the first quarter stood at $81.6 billion, rising 85% from a year earlier. Data Center delivered $75.2 billion, up 92% and accounting for 92% of total revenue. Data Center compute brought in $60.4 billion, while networking reached $14.8 billion, up 77% and 199% respectively year over year. Edge Computing added $6.4 billion, increasing 29% over the same period. GAAP gross margin held steady at 74.9%, almost unchanged from the previous quarter. Data Center growth was strong across segments, but overall revenue concentration remains significant. NVIDIA Investor Relations

Nvidia’s guidance for the second quarter factors in no Data Center compute revenue from China, reducing the chance of missing forecasts due to China exposure. A U.S. directive in May addressed a possible foreign licensing gap. In July, the Financial Times reported that Nvidia cut its list of approved Asian clients by more than half. Reuters was unable to verify this report independently, and Nvidia did not immediately respond to requests for comment. China could offer future growth, but regulatory challenges may hinder sales in other regions. NVIDIA Investor Relations

AMD is set to provide Anthropic with AI servers worth tens of billions of dollars. Anthropic aims to roll out as much as two gigawatts of MI450 hardware starting in the first half of 2027. AMD could put in $5 billion, depending on deployment goals being met. The deal underlines major AI customers’ interest in having an alternative supplier. However, Anthropic remains a significant Nvidia customer, leasing 300 megawatts with over 220,000 Nvidia chips. This development poses a future market-share risk but does not impact the current quarter. Reuters

The Federal Reserve will announce its next policy decision on Wednesday, July 29. Current market pricing points to about a 33% likelihood of a rate hike. Early Monday, the yield on the ten-year Treasury hovered around 4.63%. Brent crude fell 4.7% to $92.27, providing some relief from short-term inflation concerns. Nasdaq futures were up 1.3% ahead of the U.S. market open. Investors are also awaiting preliminary second-quarter GDP figures and June PCE inflation data later in the week. Broader macroeconomic movements may overshadow Nvidia-related developments in the coming days. Reuters