Nvidia (NVDA) shares are extending gains on Tuesday as investors assess its $3 billion investment in Meta Platforms (META). NVDA will participate in META's recently announced equity offering while growing collaboration on its Muse artificial intelligence (AI) assistant and related models.
At the time of this writing, Nvidia stock is up about 17% versus the start of this year.
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Why the Meta Announcement Matters for Nvidia Stock
As part of this expanded partnership, Meta has agreed to deploy Nvidia's Vera Rubin systems and Vera CPUs, alongside its Spectrum-X networking and BlueField-4 technology. Together, the giants will also optimize artificial intelligence workflows to improve performance and reduce operating costs.
For NVDA shares, the potential benefit is a deeper relationship spanning processors, networking, and software, creating more opportunities to capture Meta's AI spending.
That said, the agreement exposes Nvidia to Meta's share-price performance and reinforces ongoing concerns of circular financing as well. It's partly why the AI darling is currently trading about 9% below its year-to-date high.
Should You Buy NVDA Shares Heading into Q3 Earnings?
Nvidia's upcoming earnings, scheduled to be released mid-November, could prove a near-term catalyst that drives its share price to record levels.
Consensus is for the semiconductor behemoth to post $2.49 in earnings per share (EPS) for its current financial quarter, which would represent 100% growth on a year-over-year basis.
Piper Sandler analysts have already reiterated NVDA at "Overweight" ahead of its earnings event on Nov. 18.
"Vera Rubin ramp up appears on track and co has already guided FY28 revenues +70% year-over-year. We expect strong financials and slightly better guide vs cons," the firm told clients in its latest research note. The investment firm currently has a bullish $300 price target on Nvidia shares.
How Wall Street Recommends Playing Nvidia
Piper Sandler is among one of the more conservative Wall Street firms on NVDA stock.
According to Barchart, the consensus rating on Nvidia sits at "Strong Buy," with the mean price target of about $329 indicating the AI darling's multi-year rally is not out of steam just yet.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
