Nvidia's Decade-Long Rally Defies Acquisition Chatter

A fleeting rumor that Nvidia was in talks to acquire a major PC maker sent shockwaves through related stocks this week, but did nothing to slow the chipmaker's own historic advance. Shares of Dell and HP Inc. jumped 6.7 percent and 5.3 percent respectively on the report before Nvidia issued a terse denial. "The media report is false; NVIDIA is not in talks to acquire a PC manufacturer," the company stated, causing both Dell and HP to shed over three percent in after-hours trading. Analysts like Gene Munster of Deepwater Asset Management had already poured cold water on the idea, noting the starkly different margin structures of a chip designer and PC assemblers.

The incident underscored how peripheral news fails to dent Nvidia's core narrative, driven overwhelmingly by artificial intelligence. On Tuesday, the stock climbed 3.8 percent, marking its tenth consecutive day of gains—the longest such streak since a similar run in 2023. Over seven days, the advance totals roughly 7.5 percent. The equity now trades at 167 euros, solidly above its 200-day moving average of 155.75 euros. For the past twelve months, the stock is up a hefty 67 percent, sitting just eight percent below its 52-week high of 179.62 euros.

This momentum is built on staggering financial performance and future promise. In the fourth quarter of fiscal 2026, Nvidia posted record revenue of $68.1 billion, a 73 percent year-over-year increase. Profit per share came in at $1.62, handily beating market expectations. For the current first quarter of fiscal 2027, the company is targeting $78 billion in revenue. CEO Jensen Huang, speaking at the GTC conference in March, outlined an order backlog exceeding $1 trillion through 2027 for its current Blackwell and upcoming Vera Rubin GPU architectures.

Should investors sell immediately? Or is it worth buying Nvidia?

While AI hardware demand shows no signs of slowing, with the data center segment growing 75 percent annually and accounting for 88 percent of total sales, Nvidia is strategically diversifying its ecosystem. The company recently launched "NVIDIA Ising," its first open-source family of quantum-AI models. This software is designed to calibrate quantum processors and perform error correction, reportedly 2.5 times faster and three times more accurate than classical methods like pyMatching. Early adopters include Fermilab, Harvard University, and several national laboratories, with the technology reducing calibration times from days to mere hours.

Concurrently, Nvidia is deepening its infrastructure strategy with a $2 billion strategic investment in Marvell Technology. The move integrates Marvell's custom chips into Nvidia's ecosystem via the NVLink Fusion platform. Market observers interpret this as preparation for the next anticipated bottleneck in AI infrastructure: data connectivity between chips, rather than raw computing power itself.

The quantum software announcement triggered a rally across the global tech sector. In Asia, shares of specialized IT firms surged, with South Korean companies Axgate and ICTK hitting their daily trading limit of a 30 percent gain. On Wall Street, Nvidia's stock opened 3.7 percent higher. The broader quantum computing market, projected to grow to over $11 billion by 2030, represents a key future battleground where Nvidia is now planting its flag.

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