Key Stats for Nvidia Stock
- Price change for Nvidia stock in the last 6 months: 25%
- $NVDA Stock Price as of Oct. 8: $230
- 52-Week High: $243
- $NVDA Stock Price Target: $329
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What Happened?
Firmus, an Australian AI data center operator backed by Nvidia (NVDA), has pulled its planned IPO. The company blamed market volatility and conditions.
Firmus had reportedly planned to raise $5 billion. Shares were set at A$11 each, valuing the company at about $30.6 billion.
It would have been Australia’s second-largest share sale.
Firmus said its board felt the terms did not reflect the business’s strength. It will now seek private-market funding and consider other options.
The company’s backers include more than Nvidia.
In August, Firmus announced a $2 billion funding round. Nvidia, Coatue Management, Blackstone, and Jane Street participated.
Firmus has now raised over $3 billion in equity in the past year. Its valuation then was over $10.5 billion.
Firmus also signed deals with Meta last month.
It will provide GPU computing capacity in Southeast Asia, built on Nvidia’s DSX platform.
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What the Market Is Telling Us About Nvidia Stock
A canceled IPO shows how jumpy the market is right now. But the business side looks solid. Firmus says it still has a strong growth outlook, and it plans to keep raising money.
For Nvidia stock, this is a side story. Firmus is one of many “neocloud” partners that buy Nvidia chips.
On its August earnings call, Nvidia named Firmus among the regional cloud companies it works with in Australia.
The core business is doing well. Nvidia’s Q2 revenue was $96 billion. Data center sales were $89 billion. Neocloud and enterprise customers drive much of that growth.
Nvidia expects Q3 revenue of $108 billion. It sees about 70% growth in fiscal 2028. The company says supply, not demand, is the limit.
Margins are the soft spot. Memory costs are rising fast. Nvidia expects gross margin of 74% in Q3, falling to 71%-72% in Q4.
Nvidia stockholders will want to watch that.
Nvidia also returned a record $26 billion to shareholders in Q2. That included $20 billion in buybacks and $6 billion in dividends.
So the Firmus news is a funding hiccup for one partner. It doesn’t change what Nvidia says about demand.
Still, Nvidia stock tends to move with the AI spending story. Investors will want to see whether other neoclouds can raise money easily.
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So what is Nvidia stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
