Nvidia: Subsidization Of Sovereign AI Backed By Washington And CPU Edge

2026-06-01 05:16:17 ET

In my last coverage of Nvidia ( NVDA ) stock, I marked a Strong Buy based on its shift towards being the builder/base of the Agentic-as-a-Service [GaaS] economy. In this, Nvidia is monetizing intelligence tokens per watt instead of hardware/chips. In that thesis, the main bullish catalysts include inference disaggregation (Vera Rubin + Groq 3), which is opening up high-energy efficiency, and NVLink Fusion, which is putting a high-margin ASIC tax on rival hyperscaler chips. I argued that with deep software lock-in through NemoClaw and exponential compute demand from Physical AI, Nvidia’s moat is expanding. Despite risks like power grid caps, thermal limits, and possible hyperscaler CapEx cliffs, Nvidia’s token-yield DCF modeling and technicals pointed to a 33% upside, at that time. As expected, NVDA stock ticked the target mCap of $5.723 trillion (through a swing-high of $5.728 trillion) in mid-May 2026 and corrected to $5.114 trillion mCap, at the time of writing....

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