Rosenblatt Doubles Down on Nvidia After Massive Deal
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Rosenblatt Doubles Down on Nvidia After Massive Deal Moz Farooque ACCA Thu, September 3, 2026 at 5:25 PM EDT 2 min read NVDA This article first appeared on GuruFocus . Nvidia ( NASDAQ:NVDA ) investors may be focusing too much on the $12.93 billion price tag attached to its Hugging Face acquisition and not enough on what the deal says about the chipmaker's broader AI strategy. Rosenblatt Securities analyst Kevin Cassidy reiterated his Buy rating and $390 price target on Nvidia following the deal, implying more than 71% upside from shares trading around $228. His takeaway is that Nvidia is increasingly willing to use its enormous financial resources to protect and expand the ecosystem surrounding its AI hardware.Cassidy described the acquisition as Nvidia continuing to use its balance sheet to maintain the health of the AI ecosystem as it rapidly expands. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator. That matters because Hugging Face sits at the center of the open-source AI developer community. The platform hosts machine-learning models, datasets and applications used to build, customize and deploy AI systems. Nvidia is already one of the largest contributors of open models and data to the platform, according to Cassidy. CEO Jensen Huang said Hugging Face has more than 18 million developers, researchers and creators , hosting more than 3 million models, 500,000 datasets and 1 million applications . More than 200,000 companies use the platform. The strategic opportunity extends beyond Nvidia's dominant GPU business. Nvidia already develops its Nemotron family of open-source models. Owning Hugging Face would give the company deeper exposure to the software and developer layers of AI just as major customers increasingly explore internally designed chips. For investors, the key question is whether Nvidia can turn its hardware dominance into an even broader AI platform advantage. Rosenblatt's thesis suggests Hugging Face could strengthen developer loyalty, increase adoption of Nvidia-compatible models and tools, and make the company harder to displace even as hyperscalers build proprietary silicon. The risk is execution. Nvidia is paying nearly $13 billion , meaning investors will eventually need evidence that the acquisition produces strategic or financial returns rather than simply enlarging Nvidia's AI footprint. For now, Rosenblatt remains firmly bullish. Cassidy's $390 target suggests he believes Nvidia's expanding ecosystem can support substantial further upside even after the stock's enormous AI-driven run.
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