Nvidia shares slipped after the company briefly hit a record $4.5 trillion valuation earlier this week. The move came as Meta took a new step to grow its own AI chips.
Meta moves on Rivos and expands MTIA plan
Meta said it will acquire AI chip startup Rivos. The deal aims to grow Meta’s custom silicon push and cut its reliance on Nvidia hardware.
According to Yahoo Finance, the deal would strengthen Meta’s MTIA initiative, which started in 2023 with Broadcom. These chips target training and inference in Meta data centers. They promise lower costs and better efficiency.
Meta executives said bringing Rivos’ AI system design skills in-house should speed up work. The company still spends big on Nvidia-based systems while it builds its own chips.
CoreWeave deal shows ongoing Nvidia demand
Just last week, Meta agreed to a deal worth up to $14.2 billion with CoreWeave. CoreWeave rents compute built on Nvidia hardware. This shows Meta’s near-term needs still lean on Nvidia gear.
The balance is clear. Meta wants more control with MTIA and Rivos. But it also needs Nvidia capacity to power current AI services.
Analyst targets and valuation context
Based on one year targets from 53 analysts, the average price target for NVIDIA is $214.95. The high estimate is $389.73 and the low estimate is $100.00. The average target implies a upside of +14.97% from the current price of $186.96.
GuruFocus estimates put NVIDIA’s one year GF Value at $320.57. That suggests a upside of +71.46% from the current price of $186.96. These figures appeared in the Yahoo Finance report.
The share pullback followed the Meta news. Investors weighed the risk of more in-house chips at large buyers. They also noted ongoing orders for Nvidia-backed cloud capacity.
This mix sets a near-term push and pull for Nvidia. Long-term buyers look at growth in AI demand. Near-term traders track custom chip moves at big platforms like Meta.
