Nvidia’s Vera CPU Goes Live as a $1.85 Billion Cloud Bet Pays Off on Paper
Published on 07/22/2026 at 06:33 | Redaktion boerse-global.de
The chipmaker’s long-anticipated push into server processors is no longer a prototype exercise. On July 21, Nvidia disclosed the technical specifications of its first in-house server CPU, the Vera chip, and confirmed that active shipments have begun. The move marks a direct challenge to Intel and AMD’s decades-long grip on the x86 data-center market.
First samples reached OpenAI, Anthropic, and SpaceX back in May. Now the ramp is accelerating: OpenAI plans to deploy the Vera CPU at scale in the third quarter of 2026. Whether Nvidia can crack a market dominated by established architectures remains the central question for investors weighing the company’s evolution from GPU specialist to full-stack infrastructure provider.
The Full-Stack Wager
Optimists argue that Vera’s advantage lies not in raw specs alone but in how it integrates with Nvidia’s broader ecosystem. The CPU is designed to outperform traditional x86 chips on certain AI workloads, and when paired with the company’s in-house Spectrum-6 networking gear, it creates a closed-loop system that rivals would struggle to replicate. Analysts see this as a genuine competitive moat rather than marketing spin.
The average price target on Nvidia stands at €264.83, implying a 45.6% upside from current levels — suggesting the market is already pricing in some degree of success for the expansion into new hardware segments.
Should investors sell immediately? Or is it worth buying Nvidia?
The Bear Case: Circular Risks and Margin Squeeze
Skeptics point to a less tidy picture. Nvidia now holds a 9.3% passive stake in cloud provider Nebius Group, a position disclosed in a July 13 SEC filing. The holding comprises 22,256,412 Class A shares, the bulk of which — 21,065,936 shares — stem from a prepaid warrant acquired as part of Nvidia’s $2 billion investment in Nebius on March 11. The warrant’s exercise price is a nominal $0.0001 per share, but Nvidia cannot sell or exercise the position until September 11, 2026.
At Nebius’s recent price of $182.62, the warrant is worth roughly $3.85 billion against the original $2 billion outlay, translating to a paper gain of about $1.85 billion. Nebius shares surged as much as 13% on the news to $206.79 before settling back. The cloud firm, which emerged from the restructuring of Yandex, has locked in over $40 billion in contracted revenue with Microsoft and Meta, including a Meta deal worth up to $27 billion signed in March and a $1 billion computing agreement with AI startup Reflection AI.
Yet some analysts warn of a “circular financing” pattern: capital flows to cloud providers that in turn buy Nvidia’s own hardware. The company also faces rising costs for high-bandwidth memory needed for its upcoming Rubin architecture, which could pressure margins. Nvidia’s stock has gained 13.48% year-to-date but remains 10.18% below its May record high of €202.50. The market capitalization hovers around €4.3 trillion.
A Tight Technical Tape
For now, traders are watching the 50-day moving average at €181.54 — the stock sits just 0.19% above that level, a narrow band that leaves sentiment exposed. The next major catalyst is the upcoming quarterly report, where Nvidia must demonstrate that growth targets remain on track and justify the current valuation.
If Vera shipments slip or memory costs eat into margins, the 200-day average at €165.75 could emerge as a realistic floor. Another date to watch: September 11, 2026, when lock-up restrictions on the Nebius stake expire. How Nvidia handles that position will signal the seriousness of its long-term cloud partnership ambitions.
Nvidia at a turning point? This analysis reveals what investors need to know now.
Valuation Context
On the fundamentals, Simply Wall St pegs Nvidia’s fair value at $236 using a discounted cash flow model, suggesting roughly 14% upside. The price-to-earnings ratio of 30.8 sits well below the industry average of 57.6, supported by free cash flow of $119.4 billion over the trailing twelve months. In German trading, the stock closed at €179.70, up 0.90% on the day, about 1% below the 50-day average of €181.50 and roughly 11% off the 52-week high of €202.50 set on May 14.
The Nebius stake adds a billion-dollar paper profit to Nvidia’s balance sheet and underscores its push into AI cloud infrastructure, but it has done little to move the needle on its own share price. The real test will come when Vera CPUs start generating revenue — and when the market decides whether Nvidia can truly own the data center from chip to cloud.
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Nvidia Stock: New Analysis - 22 July
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