Nvidia Invests $5B in Intel, Yet an Intel ETF Takes Center Stage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 19 2025
0mins
Should l Buy NVDA?
Source: Benzinga
Nvidia's Investment in Intel: Nvidia has made a significant $5 billion investment in Intel, but the real highlight was the performance of Intel's leveraged ETF, which surged nearly 46% in one day, far outpacing Nvidia's own ETF.
Market Reactions and ETF Performance: Intel's stock saw a remarkable increase of over 26%, while Nvidia's stock rose only about 3%. This disparity indicates a shift in investor sentiment towards Intel's potential in the AI sector, despite Nvidia's established dominance.
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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: 180.050
Low
200.00
Averages
264.97
High
352.00
Current: 180.050
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 Price Volatility: Despite strong performance, Nvidia's stock price has declined following the earnings release, currently trading at a P/E ratio of 37, which drops to 23 based on expected earnings, highlighting market concerns over its high valuation.
- Market Position Consolidation: As the world's most valuable company with a market cap of $4.4 trillion, Nvidia maintains a strong investment appeal despite overall bearish sentiment in tech, thanks to its leadership in the AI chip sector.
- Cautious Investor Sentiment: Analysts suggest that investors should approach Nvidia with caution in the current market environment, as while its business remains strong, the likelihood of the stock doubling in value in the short term is low, necessitating realistic expectations.
See More
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- Core Investment: The Vanguard Total Stock Market ETF (VTI) tracks the entire U.S. stock market and owns over 3,500 stocks, providing investors with the convenience of investing in thousands of stocks with a single click, making it ideal for those looking to simplify their investments.
- Cost Advantage: With an expense ratio of just 0.03%, investing $10,000 incurs only $3 in annual fees, significantly lowering investment costs and enhancing long-term return potential for investors.
- Long-Term Return Potential: Since its inception in 2001, the ETF has averaged a 9.2% annual total return, meaning a $10,000 investment would be worth over $90,000 today, demonstrating its effectiveness as a wealth-building tool.
- Concentration Risk and Lack of Diversification: Despite holding many stocks, the ETF's performance is heavily reliant on the top 10 companies, presenting significant concentration risk, while lacking exposure to international stocks and fixed-income assets, which may hinder portfolio diversification.
See More
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- Nvidia's Remarkable Performance: Nvidia reported a staggering 73% year-over-year revenue growth in its latest earnings, reaching $68.1 billion, primarily driven by a 75% increase in its data center segment, although concerns about its high valuation and future growth have intensified in the market.
- Strong AWS Growth: Amazon's AWS achieved a 24% year-over-year growth in Q4, with sales hitting $35.6 billion, highlighting its critical role in AI application infrastructure, while e-commerce and advertising revenues also grew by 10% and 23%, respectively, showcasing the diversity of its business.
- Market Expectation Differences: Despite Nvidia's strong growth momentum, its 37 times earnings valuation and high expectations for future growth pose greater risks for investors, whereas Amazon offers a more attractive investment option at 30 times earnings, reducing the risk of pricing power erosion.
- Long-Term Investment Considerations: Nvidia's business heavily relies on the cyclical semiconductor market, while Amazon demonstrates stronger resilience due to its diversified revenue streams and lower profit margins, making it a more durable investment choice in the long run.
See More
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- Nvidia Growth Momentum: Nvidia reported a staggering 75% year-over-year revenue increase in its data center segment, reaching $62.3 billion, driven by strong AI demand; however, high expectations led to a stock price drop, reflecting market concerns about future growth sustainability.
- Projected Revenue Growth: The company anticipates first-quarter revenue of approximately $78 billion, representing a 77% year-over-year increase, indicating continued revenue acceleration, yet the cyclical nature of the semiconductor industry poses risks to long-term growth potential.
- Amazon's Diversification Advantage: Amazon's AWS segment saw a 24% year-over-year sales increase to $35.6 billion in Q4, highlighting its critical role in AI application infrastructure, while its e-commerce and advertising revenues grew by 10% and 23%, respectively, showcasing broad-based business resilience.
- Investment Choice Analysis: While Nvidia excels technologically, its business is heavily concentrated in a cyclical sector, whereas Amazon offers a more diversified revenue stream and structural resilience, making it arguably a more attractive long-term investment.
See More
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- Strong Earnings Report: Adobe reported $6.2 billion in revenue for Q4, reflecting a 10.5% year-over-year increase, and total revenue for fiscal 2025 reached $23.8 billion, growing 11%, showcasing robust performance in the digital media sector despite a 38% decline in stock price over the past year.
- Robust Cash Flow: The company generated over $10 billion in operating cash flow in fiscal 2025, nearly all of which was used for share buybacks, indicating management's optimistic view on the undervaluation of its stock while reducing the share count by over 6%.
- Accelerated AI Integration: Adobe is aggressively integrating its proprietary AI model, Firefly, into its flagship applications, driving customers to upgrade to higher-tier subscriptions, with first-quarter fiscal 2026 revenue projected at $6.3 billion, translating to approximately 9.9% year-over-year growth.
- Attractive Valuation: Despite facing competitive risks from AI, Adobe's stock is currently trading at about 16 times earnings, suggesting that the market may be overly pessimistic about its future growth; given its strong customer base and cash-generating capabilities, the current valuation may present a compelling buying opportunity for investors.
See More
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- Stock Price Fluctuation: IREN shares fell about 5% in Wednesday's after-market session after rising nearly 13% during regular trading, indicating market divergence regarding its future performance.
- AI Cloud Revenue Forecast: The company forecasts an annualized revenue of $3.7 billion from its AI Cloud segment this year, bolstered by the purchase of 50,000 advanced gaming processing units (GPUs) from Nvidia, increasing total capacity to 150,000 units and solidifying its market position.
- Impact of Financing Plans: IREN plans to raise up to $6 billion through an at-the-market stock offering to fund its expansion, which has pressured the stock price; however, retail investors remain optimistic about the company's growth prospects.
- Retail Investor Sentiment Shift: On Stocktwits, retail investor sentiment flipped from 'bearish' to 'bullish', as traders believe the company's expansion efforts will lead to explosive growth, reflecting confidence in its investments in AI infrastructure.
See More
