Nvidia's Rubin Architecture Goes into Full Production, Easing AI Chip Supply Constraints
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
0mins
Source: Fool
- AI Chip Production Breakthrough: Nvidia announced at CES that its revolutionary Rubin Architecture is now in full production, ahead of the original target for the second half of 2026, which is expected to significantly alleviate the AI chip shortage and help cloud and data center operators meet surging demand.
- Cost Efficiency Improvement: The Rubin architecture's six-chip combination achieves a 10x reduction in inference token costs and a 4x reduction in the number of GPUs needed to train MoE models, which not only enhances AI training efficiency but also positions Nvidia to capture a larger market share in a competitive landscape.
- Strong Market Demand: Microsoft reported a 40% year-over-year growth in its Azure cloud services for Q1 FY2026, yet still faces capacity constraints, indicating robust demand for Nvidia's AI chips, which is likely to lead to substantial sales growth.
- Investment Opportunity Emerges: Nvidia's stock trades at 25 times next year's expected sales, and with the early production of Rubin chips and strong market demand, it presents an attractive investment opportunity that could drive stock price appreciation.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 185.040
Low
185.00
Averages
255.63
High
352.00
Current: 185.040
Low
185.00
Averages
255.63
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.
