Massive News for Nvidia Stock Investors! — NVDA Stock Analysis

[00:00:00] Speaker 1: We got some massive news for NVIDIA stock investors this morning, Monday, June 1st, 2026, sending shares of NVIDIA stock higher, and then sending shares of AMD and Intel stock lower. I'm going to discuss these developments. And finally, this is what NVIDIA stock investors have been hoping for. We've been watching shares of Intel and AMD stock soar while NVIDIA stock had trailed behind those two in 2026. I want to thank The Motley Fool for sponsoring this video. Visit fool.com slash parkev for the 10 best stocks to buy now. So the reason for the big increase is that NVIDIA announced that it's taking aim at Intel and AMD with the debut of its RTX Spark super chips for Windows laptops. It's a CPU, the processor, which includes a Blackwell GPU, and Grace CPU will power laptops from manufacturers, including Asus, Dell, HP, and Microsoft when it lands this fall. This is a market that Intel and AMD has dominated in previous years, and NVIDIA is now taking aim at this market. And this is competition at its finest. And this is typically what you see when competition increases. And what I mean by that is in the data center, you've heard about Intel and AMD gaining newfound fame because they're providing products for the data center. This is a market that NVIDIA dominated. So undoubtedly, NVIDIA was not happy about that, right? No company appreciates when some other company encroaches on its turf. And when they see other companies encroaching on their turf, they take action to fight back. They take action to take back what's theirs, or they attack their competitors in a different arena. And this has something to do with that, right? If AMD and Intel and others were not competing against NVIDIA in the data center market, and they left NVIDIA alone in the data center market, then maybe NVIDIA wouldn't encroach upon these companies in the market which they dominate, which is the personal computer industry. But since NVIDIA faced increasing competition, since it noticed these two companies gaining market power, it did not want to leave them to grow without constraint, without facing battles on their own turf. And so this is its fighting back force here. This is great news for NVIDIA stock investors. This opens up a new market category for NVIDIA. And already gamers have been extremely enthusiastic about NVIDIA's technology. And now others like myself, I'm certainly interested in this product. I need a powerful computer to support content creation. And NVIDIA highlighted that content creators will benefit most significantly from this new product, as well as gamers and high intensity users. The product will be focused on the higher end of the market first, and then perhaps it will be available more broadly. And remember in the conference call, NVIDIA's management team highlighted that they will be seeing the CPU opportunity approaching and perhaps exceeding $20 billion in sales. And so NVIDIA is most well known for its GPU. So NVIDIA is also gaining in the CPU, which is also gaining in importance in all aspects of the computing industry, whether you're thinking about the data center or whether you're thinking about personal computers. So NVIDIA stock, I'm happy to see the stock soaring by 6%. As you know, I've owned NVIDIA stock since it was around $90 a share. I'm happy to see the stock soaring by 6%. I'm happy to see it trading today at around $224 per share. I've also ranked NVIDIA as one of the best 12 stocks you can buy right now. So I'm happy to see NVIDIA stocks soaring here in response to this development. And I've also, you know, done comparison between NVIDIA and AMD, and you all have highlighted correctly that NVIDIA has underperformed underperformed AMD so far in 2026. And today's performance, the increase in share price for NVIDIA and the decrease in share price for AMD is about what I was expecting coming into this year. The valuation of NVIDIA was so much more attractive than AMD and NVIDIA's businesses so far ahead of the competition and AMD is one of its competitors. I just didn't think it made sense. If you're interested in the category, I just didn't think it made sense to buy AMD instead of NVIDIA. And yet the market had proved me wrong. And so hopefully that trade reverses here and us NVIDIA shareholders start to see NVIDIA recapture what is rightfully, what they've rightfully earned in their domination of the industry, their sales and profits and cash flow have been supreme and superior to companies like AMD and Intel and others. But the share price hasn't reflected the company's fundamental performance improvements and the fact that it's just a phenomenal business growing revenue at such phenomenal rates with operating profit margins among the best in the world, returns on invested capital among the best in the world. All of these excellent numbers that NVIDIA is reporting, in my opinion, have not yet been reflected in the company's share price, which even after today, after rising by 6%, NVIDIA stock is only up by 20% so far in 2026, which is a good rate of return. Don't get me wrong. Don't get me wrong. But when you compare it with other companies like AMD and Intel and Micron and SanDisk and SK Hynix and some of these other companies that are up much more than that, you feel like that's not justified. Like NVIDIA share price should be improving by a similar, if not greater than percentage compared to some of those rivals, given how much better NVIDIA's performance has been across all important metrics. So I'm happy to see this, but I still think NVIDIA stock is undervalued. I still think NVIDIA stock is a great stock to buy a 6% increase doesn't close the gap. I still think there's a lot more runway here for NVIDIA stock investors. [00:06:56] Speaker ?: Thank you.