Nvidia has been using ARM CPU cores for its superchips, with plans for more ARM-based chips like the N1 laptop chip. Despite FTC blocking Nvidia’s ARM acquisition, CEO Jensen Huang has surprising moves in store.

Nvidia reported Q2 fiscal 2026 results, boasting a 56% revenue growth to $46.7 billion YoY, a 72.4% gross margin, and $26.4 billion net income. They anticipate $54.0 billion revenue and a 73.3% gross margin.

Nvidia and Intel announced a partnership to develop AI products. Nvidia will integrate Intel x86 server CPUs into its architecture using NVLink, previously only for Arm CPUs. Analysts see potential for semiconductor companies from this deal.

Bank of America analysts updated their view on Nvidia after the Intel partnership. The deal could benefit Nvidia with NVLink scaling in the x86 ecosystem, improved access to enterprise AI through Intel, and increased U.S. investment.

Analysts expect limited near-term impact from the Nvidia-Intel deal on competitors like AMD and ARM, but potential for semiconductor capital equipment growth. They noted the deal’s strategic advantages for Nvidia in the AI chip market.

Bank of America analyst Vivek Arya reiterated a buy rating and $235 target price for Nvidia, based on a 37 multiple of his estimate for the price-to-earnings ratio for 2026. This reflects Nvidia’s strong position in AI markets.

Read more at Yahoo Finance: Analysts revamp Nvidia stock outlook on its investment in Intel