Nvidia Launches Robot Coalition in Japan as Chip Stocks Enter a Technical Bear Market
Published on 07/20/2026 at 09:51 | Redaktion boerse-global.de
Nvidia’s stock is trading more than 12 percent below its May peak, yet the chipmaker is pressing ahead with some of its most ambitious industrial initiatives. Late last week the shares closed at €177.46 in Frankfurt, shedding 2.14 percent on the day and leaving them roughly ten percent higher since the start of the year. The broader Philadelphia Semiconductor Index has fared worse: it slid 21.6 percent from its June 22 high by July 20, officially entering a technical bear market. The trigger was the unveiling of Kimi K3, a Chinese open-source model with 2.8 trillion parameters that Moonshot AI developed despite US export controls. While the news rattled chip stocks globally and briefly allowed Apple to retake the crown as the world’s most valuable company — Nvidia defended its lead with an $11 billion edge by the close on July 19 — some analysts argue the model’s massive 1.5-terabyte HBM memory requirement could actually boost demand for Nvidia’s graphics processors.
Far from the noise, Jensen Huang was in Tokyo building a different kind of future. The CEO announced the Cosmos Coalition, a group of ten Japanese industrial heavyweights including Fanuc, Hitachi, Kawasaki Heavy Industries, Kubota, NEC, SoftBank, Sony, Yaskawa Electric, Fujitsu, and AIRoA. Together they will develop open AI models for the physical world, starting with Cosmos 3 Edge — a world model designed to help robots and visual agents perceive and navigate real environments in real time. Huang argued that Japan now has a historic opportunity to modernise its factories with artificial intelligence, making machines smarter, more adaptable, and cheaper.
The Japan push extends well beyond software. Through a partnership with Noetra Corp., Nvidia plans to build a dedicated AI factory on Japanese soil equipped with 13,750 Vera CPUs and 27,500 Rubin GPUs, delivering 140 megawatts of data center capacity. The project falls under the government’s FRONTia programme, with support from the Ministry of Economy, Trade and Industry. It is part of a larger Noetra initiative that involves 44 Japanese companies and a total investment of $6.2 billion in sovereign AI infrastructure. The facility is expected to come online in 2028. Japan’s AI market is projected to reach $27.9 billion by 2029, underpinned by state subsidies and a push for international cooperation.
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Nvidia is also deepening its presence in Japanese healthcare. The Tokyo-1 consortium, led by Mitsui subsidiary Xeureka, has adopted Nvidia’s BioNeMo Agent Toolkit to automate drug discovery. Pharmaceutical firms Ono Pharmaceutical, Daiichi Sankyo, and Astellas Pharma are already using the framework, which was introduced in late June.
Back on Wall Street, the post-Kimi jitters have not shaken analyst conviction. Oppenheimer ranked Nvidia second on its “Best of Best” momentum list on July 19, with analyst Rick Schafer noting that hyperscale cloud providers are still pouring hundreds of billions into AI data centers. Price targets across the Street range from $270 to $500, with Goldman Sachs at $285, Truist at $307, KeyBanc at $330, and Baird at $500. The consensus sits between roughly $298 and $309. Institutional investors are adding exposure: Munich Re boosted its Nvidia stake by 12.5 percent in the first quarter, buying shares worth about $200.9 million. Corporate insiders have taken the opposite side, selling $410.6 million in stock over the past three months without any buybacks.
The fundamental picture remains strong. In the first fiscal quarter of 2027, Nvidia posted revenue of $81.6 billion, up 85 percent year on year, with the data center segment surging 92 percent to $75.2 billion. Adjusted earnings per share came in at $1.87, beating consensus by $0.11. Management guided for roughly $91 billion in revenue this quarter, implying about 96 percent growth. The quarterly dividend was raised to $0.25, and an $80 billion share repurchase programme is underway. Meanwhile, a separate deal via Foxconn will see SpaceX receive 13,000 racks of Nvidia GB300 AI servers valued at $52 billion, with deliveries scheduled between the fourth quarter of 2026 and the first quarter of 2027.
Huang continues to frame the near-term volatility as noise against a much larger trend. He has forecast that global data center spending could reach $4 trillion by 2030, which would theoretically support a Nvidia market capitalisation of $20 trillion — roughly four times its current level. The CEO also dismissed concerns about smuggled chips reaching China, calling any attempt to assemble data centers from contraband components “a dead end” due to the lack of support and repairs. With Microsoft set to report quarterly results on July 29, investors will soon get a fresh read on whether the cloud giants are still willing to write the giant checks that underpin Nvidia’s growth story.
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