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    Should Hugging Face Deal Require Action From Nvidia (NVDA) Investors?

    Simply Wall St·09/09/2026 01:28:31
    Listen to the news
    • Nvidia is integrating deeper into the AI stack, agreeing to acquire Hugging Face for about $12.9b while its hardware underpins OpenAI’s GPT-6 Astra and large multi-year infrastructure builds across partners like Firmus and AWS.
    • The Hugging Face deal gives Nvidia direct reach into a large open-model developer community, tying future AI software workflows more tightly to its compute platforms.
    • Next, the focus is on how Nvidia’s Hugging Face acquisition may reshape its investment narrative around AI demand, platform control and execution.

    Scan handpicked peers riding the same AI infrastructure wave as NVIDIA by checking out the 55 AI infrastructure stocks for potential next candidates on your watchlist.

    NVIDIA Investment Narrative Recap

    NVIDIA shareholders effectively need to believe that AI compute, software and services stay capacity constrained for years, and that this firm remains the preferred full stack supplier. The short term swing factor is whether hyperscalers and AI labs keep ramping data center spend in line with NVIDIA’s aggressive product cadence while regulatory and export limits, especially around China, do not materially slow orders. The Hugging Face acquisition and deepening Nemotron agent deals reinforce that story. The Jamendo copyright lawsuit and rising power, supply chain and custom ASIC risks sit on the other side of that bet.

    Among the latest updates, the expanded collaboration with Amazon Web Services looks most relevant when thinking about NVIDIA’s Hugging Face deal and AI demand. AWS plans to deploy 2 million additional NVIDIA GPUs in 2027 to 2028, integrate Vera CPUs, and co build AI factories for government workloads. That ties NVIDIA’s roadmap to a major cloud partner at scale and supports the view that AI infrastructure spending remains intense. It also amplifies existing risks around manufacturing capacity, advanced memory supply, power constraints and potential pricing pressure as customers gain more buying leverage.

    Even so, before treating NVIDIA as a simple AI infrastructure winner, it is worth pausing on ...

    Read the full NVIDIA narrative to see the case behind these numbers.

    NVIDIA’s current analyst narrative points to forecast revenue of US$714.0b and consensus earnings of US$392.6b by 2029, based on an assumed 41.2% yearly revenue growth rate and an earnings increase of about US$233.0b from current earnings of US$159.6b.

    NVIDIA's forecasts show fair value at $302.83 versus $225.73, indicating a 34% upside to its current price that may not last much longer.

    NasdaqGS:NVDA 1-Year Stock Price Chart
    NasdaqGS:NVDA 1-Year Stock Price Chart

    Exploring Other Perspectives

    One catalyst that the more cautious analysts focus on is customer concentration. You are seeing Nemotron show up in Orange Logic, CrowdStrike and others, yet the lowest forecasts still only penciled in revenue of about US$688.2b and earnings of roughly US$366.8b by 2029. That is a far more restrained NVIDIA story. It reflects a view that a handful of hyperscalers could slow orders, squeeze pricing or lean harder into custom silicon, and that today’s AI agent deals might not fully offset that risk. It is a reminder that views on NVIDIA can differ sharply. Use this Hugging Face news and the new Nemotron deployments as a prompt to explore both the bullish and the more cautious scenarios before setting your own expectations.

    If you want to see how others are valuing NVIDIA, compare your own view against the 116 other fair value estimates for NVIDIA.

    Form Your Own Verdict

    Don't just follow the ticker; dig into the data and build a conviction that's truly your own.

    Looking For More Ideas Beyond NVIDIA?

    If the NVIDIA story has sharpened your interest in AI, it can help to widen the lens and review other businesses with different risk and income profiles using the Simply Wall St Screener.

    • For investors who want income to play a bigger role in total returns, scan a curated set of higher yielding candidates through the 6 dividend fortresses.
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    • When you want to cast a wider net for under followed opportunities with solid fundamentals, the 17 high quality undiscovered gems can surface stocks that may not yet be widely tracked.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.