Nvidia Goes Nuclear: Powering AI With Microreactors and Recurring Revenue
Published on 07/05/2026 at 14:13 | Redaktion boerse-global.de
Nvidia is quietly rewriting its growth playbook on two fronts: securing its own energy supply and transforming how its chips get funded. The chipmaker has struck a deal with nuclear startup Valar Atomics to build a microreactor for a small data center in Utah, aiming to slash the water consumption of AI infrastructure. At the same time, a new financing arm is helping smaller cloud providers buy its most expensive processors in exchange for a cut of their future rental income. The moves come as the stock trades at a valuation that, by one measure, has dipped below Coca-Cola’s.
Measured on forward earnings, Nvidia now commands a price-to-earnings multiple of around 22, while the beverage giant trades closer to 26. For a company leading the artificial intelligence revolution, that gap has caught the attention of the Street. Thirty-seven analysts overwhelmingly rate the stock a strong buy, with an average price target implying roughly 60% upside from current levels. The catalysts they cite include the upcoming Vera Rubin platform and growing revenue from CPU sales.
Yet the share price tells a more subdued story. Nvidia closed at €171.98 on Friday, up 1.09% on the day and 1.88% for the week, but down 7.16% over the past month. From its record high of €202.50 in mid-May, the stock has retreated 15.07%. Year-to-date, the gain stands at just 6.75% — lagging the S&P 500. Rising bond yields have weighed on the entire semiconductor sector; the yield on the 10-year U.S. Treasury recently climbed to 4.6%, while inflation forecasts hover between 4% and 6%, compressing multiples across the industry.
A New Revenue Model: From Chip Sales to Income Sharing
While the stock consolidates, Nvidia has quietly rolled out a program called AI Compute Partnership. Led by finance chief Colette Kress, the initiative sees Nvidia effectively become a financier. Instead of simply selling graphics processors, it helps neocloud providers acquire high-end chips and takes a share of the revenue those providers later earn from renting out computing capacity.
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Two partners have already signed on. Australian firm Sharon AI has inked a six-year deal for up to 40,000 Grace-Blackwell GB300 chips. Indonesian provider Firmus is building a 360-megawatt campus in Batam designed to accommodate as many as 170,000 Nvidia chips. For the chipmaker, this shift means recurring income rather than one-off sales, while lowering the barriers for smaller players to enter the AI infrastructure market.
Nvidia dominates the AI graphics processor market with an estimated 80% share. In the first quarter of fiscal 2027, data center revenue surged 92% to $75.2 billion, propelling total company revenue to $81.6 billion — an 85% jump from the prior year. Management has guided for roughly $91 billion in the current quarter.
New Leadership in Sales and a Robotics Push
To support its broadening ambitions, Nvidia has hired Nicholas Parker as executive vice president of worldwide sales. The former Microsoft executive will take over from Ajay K. Puri, who is retiring on August 24, 2026. Parker’s mandate is to expand the company’s business with large enterprises and cloud providers globally.
On the physical AI front, Nvidia has invested strategically in Verkada, a company that applies AI to building video surveillance. The chipmaker says its computing power has already improved search accuracy for Verkada’s platform. Separately, Nvidia introduced Halos, a safety system for robotics. Agility Robotics will be one of the first to deploy it in humanoid robots, with Amazon and GXO among the early deployment sites.
CEO Jensen Huang has set his sights even further out, predicting global infrastructure spending could reach $4 trillion annually by 2030. That kind of buildout, he argues, leaves ample room for Nvidia’s continued expansion.
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Chart Sends Mixed Signals
Technically, the stock is in a tug-of-war. It currently sits 5.17% below its 50-day moving average of €181.36 but 4.73% above the 200-day average of €164.21. The 14-day relative strength index stands at 43.8 — neutral territory, neither overbought nor oversold. Should the €164.21 support level hold, the longer-term uptrend could resume.
Investors will also be watching AMD, which hosts its “Advancing AI” event in San Francisco on July 22 and 23. Any news from the archrival could shift sentiment across the semiconductor space — including for Nvidia.
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