Nvidia bets on broader AI adoption. New models and industrial applications are set to support further growth

High expectations

Nvidia’s importance to the US stock market is reflected in expectations ahead of third-quarter earnings releases. According to Yahoo Finance, analysts expect Nvidia and Micron together to account for more than one-third of EPS growth among companies in the S&P 500. AI infrastructure companies overall are expected to generate more than half of the index’s projected EPS growth.[1] These are forecasts, however, and the reported results have yet to confirm them. Yahoo Finance also reports that spending by the five largest cloud platforms on AI infrastructure this year is estimated at approximately USD 850 billion. Nvidia’s own revenue rose by more than 106% year on year to USD 96.22 billion in the second quarter of fiscal year 2027, with adjusted EPS of USD 2.22 beating estimates of USD 2.10.

More accessible models to support demand

One way the giant is supporting broader AI adoption is by developing open-weight models that users can download, inspect and modify. Most recently, the company expanded its offering with three Nemotron models. The new models are designed for AI agents running on various devices, from data centre systems to desktop computers. These are tools capable of performing tasks such as working with applications or navigating a web browser. One of the models is also intended to support complex tasks that can take several days or weeks to complete. Companies can further train it on their own data and adapt it to their needs. Another model is designed for general tasks, while the smaller one is intended for physical and conversational applications. Businesses may benefit from being able to run the models on their own hardware and keep their data within their own environment. Nvidia’s business rationale is that more accessible AI could attract additional customers and broaden its range of uses, potentially supporting chip sales over time. CEO Jensen Huang also advocates open models as a way to strengthen competition and reduce dependence on a small group of closed solutions.

Another opportunity in Germany

A concrete example of AI’s expansion is Nvidia’s planned cooperation with the German government. Investing reports that the initiative aims to develop artificial intelligence for industrial use. The project is expected to include infrastructure for so-called physical AI, such as training robots and autonomous vehicles. Its second objective is to develop models for industrial needs. Germany plans to invest hundreds of millions of euros in purchasing computing power and training models, while Nvidia is expected to contribute its own resources, including experts. Around twelve German companies are expected to join the initiative, including Siemens, Audi and Black Forest Labs. For now, however, the project is still in preparation. The initiative is expected to build on Soofi, a consortium of research institutions, universities and AI companies established in September 2025. The project received EUR 20 million in funding, which financed the training of its first model in Deutsche Telekom’s Industrial AI Cloud. For Nvidia, the planned cooperation represents an opportunity to participate in bringing AI directly into industrial processes.

Financing could slow down

News of new AI applications comes at a time of heightened nervousness in the stock market. The sell-off in semiconductor stocks deepened following September’s inflation data, which fuelled concerns about further interest rate increases by the Federal Reserve and a higher cost of capital. Nvidia shares also came under pressure as investors reassessed the financing conditions underpinning the technology boom. A key question will be whether this pressure leads the giant’s customers to reduce or postpone investments. Despite a modest decline, Nvidia shares remain in positive territory, with similar gains of less than 20% both since the start of the year and over the past twelve months, while the stock has risen by more than 890% over the past five years. Nvidia’s share price as of 16 October 2026 was USD 217.*

Source: Google Finance*

* Past performance is not a guarantee of future results.

[1,2] Forward-looking statements are based on assumptions and current expectations that may be inaccurate, or on the current economic environment, which may change. Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied in any forward-looking statements.

This text constitutes marketing communication. It does not constitute any form of investment advice or investment research, nor an offer of any transaction in a financial instrument. The content of the text does not take into account the individual circumstances of readers, their experience or financial situation. Past performance is not a guarantee or prediction of future results.