Nvidia Achieves Full Production of Rubin Architecture Six Months Ahead of Schedule
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 10 2026
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Production Ahead of Schedule: Nvidia's Rubin architecture has reached full production six months ahead of the original target for the second half of 2026, which will help alleviate the AI chip shortage and meet the urgent demands of cloud computing customers.
- Significant Cost Efficiency: The new architecture's six chips deliver a 10x reduction in inference token costs and a 4x reduction in the number of GPUs needed to train MoE models, significantly enhancing AI training efficiency and strengthening Nvidia's competitive position in the market.
- Strong Market Demand: With Microsoft's Azure cloud service experiencing a 40% year-over-year growth, the demand for Nvidia's AI chips remains robust, expected to drive sales and revenue growth, further solidifying its market position.
- Attractive Investment Opportunity: Nvidia's stock trades at a compelling 25 times next year's expected sales, and despite fierce market competition, it is viewed as an attractive investment opportunity, reflecting investor confidence in its future growth.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.890
Low
200.00
Averages
264.97
High
352.00
Current: 184.890
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Reaction: Despite beating earnings expectations, Nvidia's stock fell approximately 5.5% post-earnings, marking its worst single-day drop since April 2025, reflecting market concerns over future AI investment returns.
- Expectation Issues: Analysts noted that Nvidia faces not a numbers problem but an expectations problem, as investors are anxious about whether AI infrastructure spending can remain high, leading to stock volatility.
- Strategic Direction: Nvidia aims to reduce inference costs to one-tenth of Blackwell through the Rubin platform, attracting major cloud providers to adopt its new technology, underscoring its strategic importance and competitive edge in the AI inference market.
See More
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- Technological Transformation: By embedding AI across the radio access network (RAN), edge, and core, 6G networks will enable real-time intelligence and rapid innovation to meet increasing demands for security and trust, thereby driving infrastructure buildout in the telecommunications sector.
- Foundation for Economic Growth: BT Group CEO Allison Kirkby noted that connectivity is the backbone of economic growth, and this collaboration will lay the groundwork for a future ecosystem that is intelligent, sustainable, and secure, ensuring 6G technologies unlock new capabilities built on the strengths of 5G.
- International Leadership Position: U.S. Assistant Secretary of Commerce Arielle Roth emphasized that leadership in 6G is critical for national economic prosperity and global competitiveness, with the formation of this international industry coalition showcasing the U.S. and its allies' lead in next-generation technology.
See More
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- Job Data Expectations: Economists predict that the US economy added 60,000 jobs in February, a significant slowdown from 130,000 in January, which could have important implications for market confidence and the Federal Reserve's interest rate policy.
- Tech Stock Pressure: Despite Nvidia exceeding analyst expectations with its earnings report, its stock fell approximately 6% post-report, reflecting heightened investor concerns about the AI sector and a shift towards risk aversion in the market.
- Geopolitical Impact: Ongoing tensions between the US and Iran have increased uncertainty for investors, particularly following the US embassy's authorization for nonessential personnel to leave Jerusalem, further exacerbating market risk aversion.
See More
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- Market Dependency Risk: Currently, 91% of Nvidia's revenue comes from its data center business, indicating a high reliance on AI for growth, although the company is actively diversifying into gaming, professional visualization, and automotive sectors to mitigate potential risks.
- Outstanding Stock Performance: Over the past five years, Nvidia's stock has surged by 1,300%, reflecting strong market confidence in its AI technologies and products, while also indicating the company's success in its technological transformation.
- Strong Industry Adaptability: Nvidia focused on designing chips tailored to AI customer needs even before the AI boom, showcasing its adaptability and leadership in emerging industries, which bodes well for the company's long-term growth potential.
See More
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- Indian Market Potential: Apple is set to launch a new iPhone in India, which is expected to drive sales growth in the region, particularly as production capabilities improve, potentially becoming a key growth driver for Apple.
- New Product Launch: CEO Tim Cook hinted at a three-day launch event starting Monday, with the final day featuring a 'special Apple Experience,' which could attract significant consumer attention and enhance brand image.
- Supply Chain Adjustment: Apple plans to shift part of its Mac Mini production from Asia to a Foxconn facility in Houston, Texas, a move that not only shortens the supply chain but also strengthens domestic production capabilities, aligning with the strategic goal of American manufacturing.
- Geopolitical Risks: Cook's unease following a CIA warning about potential China-Taiwan conflict may impact Apple's operational strategies in the Asia-Pacific region, prompting investors to monitor the potential implications of such geopolitical risks on the market.
See More
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- Intensifying Market Competition: As several Chinese tech companies release generative AI models, MiniMax's M2.5 model, launched in mid-February, competes with Claude's Opus 4.6 at a lower price, attracting a significant number of developers and demonstrating strong competitive positioning in the market.
- Significant Price Advantage: According to UBS analysts, MiniMax's AI usage has reached one-third of Anthropic's Claude at just one-tenth the price, making MiniMax highly attractive in the enterprise market due to its remarkable cost-effectiveness.
- Upgraded Investment Rating: UBS initiated coverage on MiniMax with a buy rating and a price target of 1000 HKD ($127.83), representing over 30% upside from last Friday's trading at 763.50 HKD, reflecting optimistic market expectations for its future growth potential.
- Global Market Opportunities: UBS estimates that MiniMax could capture 3% of the global enterprise services market, translating to a revenue opportunity of $41 billion, with video generation and AI companionship potentially contributing around $5 billion and $4 billion, respectively, further solidifying its market position.
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