Nvidia shareholders have reason for optimism this week. The company’s leadership secured a significant regulatory victory, while new data from a key manufacturing partner underscores the relentless demand for its core products. These developments could inject fresh energy into the stock, which has recently been consolidating.
Manufacturing Partner Reports Explosive Growth
Strong fundamental support arrived from Nvidia’s primary manufacturing partner, Foxconn. The Taiwanese electronics giant reported a striking 26% surge in November revenue, reaching approximately $27 billion. Company officials explicitly identified robust demand for AI server racks as the principal driver.
These figures help alleviate mounting concerns about potential market saturation in the AI hardware sector. While competitor Hewlett Packard Enterprise (HPE) recently delivered mixed signals regarding sales, the Foxconn data suggests the expansion of AI infrastructure by major technology firms continues unabated. Currently, Nvidia shares are trading near €158, marking a year-to-date gain exceeding 17%.
A Crucial Political Win
Concurrently, CEO Jensen Huang achieved an important political outcome in Washington, D.C. He successfully lobbied for the removal of a potentially damaging clause from a U.S. defense spending bill. The proposed “GAIN AI Act” would have mandated that Nvidia prioritize U.S. customers over international buyers for shipments of its advanced AI chips.
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Following a personal meeting between Huang and President Donald Trump, the provision was stripped from the legislative draft. Huang, who had criticized fragmented regulation as an impediment to industry growth, labeled the decision “wise.” This preserves the chipmaker’s global distribution flexibility for now, although congressional advocates of stricter China sanctions are already examining alternative legislative pathways.
Competitive Landscape Intensifies
As Nvidia consolidates its position, the competitive field is evolving. In China, domestic rival Moore Threads celebrated a spectacular stock market debut, with its share price skyrocketing 400%—a clear signal of Beijing’s aggressive push for technological self-sufficiency.
Despite this, analyst sentiment remains bullish. Both Bank of America and Morgan Stanley have reaffirmed their buy ratings, projecting that Nvidia’s technological lead is secure at least until 2026. Experts point to the company’s commanding market share of up to 95% in AI accelerators, defended through its integrated hardware and software ecosystem.
With a political hurdle cleared and partner order books full, the outlook for Nvidia appears brighter. The key determinants for the stock’s trajectory will likely be the rollout speed of its new Blackwell chips and whether physical infrastructure—particularly data center power supply—can keep pace with the breakneck expansion of tech giants.
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