Nvidia’s Fate Hinges on Big Tech Earnings as Software Push and $1 Billion Korea Deal Add New Layers
Published on 07/27/2026 at 13:03 | Redaktion boerse-global.de
For Nvidia investors, the most consequential numbers this week won’t come from the chipmaker itself. They’ll arrive from Redmond, Mountain View, Seattle, and Palo Alto. Microsoft, Alphabet, Meta, and Amazon are all due to report quarterly results in the coming days, and their capital expenditure plans for artificial intelligence infrastructure will effectively serve as a proxy for Nvidia’s own near-term revenue trajectory.
The stock opened the new trading week at €183.34, up 0.74% from Friday’s close of €182.00. That puts the shares 8.52% higher over the past month but still 9.46% below the May record of €202.50. The relative calm in the price action — a relative strength index of 54.1 signals neither overbought nor oversold conditions — masks the tension building ahead of the Big Tech earnings deluge.
The Waiting Game
Nvidia’s own fiscal second-quarter results aren’t due until August 26. Until then, the company’s stock is effectively being traded on the fortunes of its four biggest customers. These hyperscalers collectively purchase Nvidia’s chips by the billions for their data center buildouts, and the more aggressively they signal future investment in AI compute, the clearer the picture becomes for Nvidia’s order books.
The dynamic is a reversal from May, when Nvidia’s own blockbuster earnings report propelled the shares higher for weeks. This time, external validation is required. The company’s first-quarter fiscal 2027 results already showed the scale of the opportunity: revenue hit $81.6 billion, up 85% year-over-year, with data center sales alone climbing 92% to $75.2 billion — now representing more than 92% of total revenue. Management guided for roughly $91 billion in the current quarter.
Should investors sell immediately? Or is it worth buying Nvidia?
Management continues to insist that supply, not demand, remains the binding constraint. The Blackwell chips are now running in an increasing number of cloud data centers, while customers are already looking ahead to the Vera Rubin architecture. The message is consistent with previous technology cycles, but the market wants confirmation from the buyers themselves.
Valuation Debate Resurfaces
On Wall Street, the old argument over Nvidia’s price tag has reignited. Goldman Sachs points to a forward price-to-earnings ratio of 21.7, calling it “compelling.” That multiple sits near the S&P 500 average and well below Nvidia’s own five-year average of 72. The bank argues the valuation fails to fully price in the growth trajectory, noting that capital spending by major cloud providers on AI is expected to rise from roughly $650 billion in 2026 to $1 trillion by 2027.
Yet Nvidia has underperformed some peers this year. The SOXX semiconductor ETF has gained 59% year-to-date, while rival AMD has posted triple-digit percentage returns. A short position of roughly $16.7 billion — the largest among major chipmakers — hangs over the stock, though market observers say the positioning is insufficient to trigger a squeeze.
Technically, the shares opened the week just above a support zone formed by the 50-day moving average at €180.67 and the 200-day average at €166.24. The stock sits comfortably above both long-term trend lines, but momentum has faded after the price failed to hold resistance near $213. The RSI of 54.1 reflects a balanced market, neither overbought nor oversold.
A Two-Front Strategy
While the market waits for Big Tech’s spending signals, Nvidia has been quietly advancing its broader ambitions. On Sunday, the company unveiled updated PhysicsNeMo libraries and CUDA-X software toolkits designed to equip AI agents with specialized physics capabilities — including accelerated solvers and quantum chemistry tools. The goal is to automate complex simulation, design, and verification cycles for next-generation semiconductors.
Nvidia’s own ACE-RTL research agent, running on the Nemotron 3 Ultra model, already demonstrates top-tier performance in automated coding for register-transfer level tasks, a critical step in chip design. More importantly, partners Cadence, Siemens, and Synopsys are integrating the tools into their electronic design automation environments. Early benchmarks show logic simulation and formal verification running up to 1.5 times faster on Nvidia’s Vera CPUs — a meaningful advantage for an industry racing to compress chip development timelines from years to months.
The $1 Billion Korea Connection
The software push was followed by a formal confirmation from South Korea. On Monday, internet giant Naver filed a mandatory disclosure with Seoul regulators, confirming that Nvidia has taken a $1 billion equity stake in the company. Nvidia receives 7.2 million newly issued shares, giving it roughly a 4.5% ownership position.
Nvidia at a turning point? This analysis reveals what investors need to know now.
The strategic agreement was signed Friday during the AI Summit in San Francisco, but the Seoul filing makes it official. The stake is part of a larger undertaking: together with investment giant Brookfield, Nvidia is planning a $10 billion investment to expand the GAK Sejong data center. By 2028, the facility is expected to reach 200 megawatts of capacity, running on Nvidia’s Vera Rubin and Blackwell architectures. The stated aim is to give South Korea a sovereign AI infrastructure independent of foreign cloud providers.
What This Week Decides
The stock’s sideways movement — Friday’s close of €182.00 represented a 0.80% decline — suggests the market is still digesting both the software news and the Korea deal. The shares trade 9.56% above their 200-day average of €166.11, confirming the long-term uptrend remains intact, but the near-term direction is entirely in the hands of Microsoft, Meta, Amazon, and Alphabet.
How emphatically those companies signal further investment in AI infrastructure will determine whether Nvidia can reclaim its May highs. For a company whose management insists supply is the only bottleneck, the question is no longer whether demand exists — it’s whether the customers are willing to keep writing the checks.
Ad
Nvidia Stock: New Analysis - 27 July
Fresh Nvidia information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
