NVIDIA to Acquire Hugging Face for $12.9B, Expands AWS AI Partnership
NVDA sits 38% above its 52-week low of $164.07 on elevated volume (2.1× avg).
Summary
NVIDIA is acquiring Hugging Face for about $12.9B, gaining access to its models, software, and datasets to strengthen DGX Cloud and AI deployment. The company also announced a partnership with AWS to build US government AI factories using 100,000 GPUs, with NeMo models added to Bedrock and SageMaker. These moves follow Q2 results showing revenue doubled to $96.2B and Q3 guidance of $108B, reinforcing NVIDIA's dominance in AI infrastructure. Additionally, NVIDIA paused parts of its revenue-sharing financing with AI cloud providers, a sign of strategic recalibration. CEO Jensen Huang affirmed OpenAI and Anthropic will remain long-term customers, while analysts raised price targets, with Evercore at $465 and Mizuho at $315. The Hugging Face deal and AWS expansion are material new developments that could further entrench NVIDIA's ecosystem and drive future growth.
At the time of this announcement, NVDA was trading at $226.14 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.5T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Wiseek News.