Nvidia has relied on ARM for CPU cores in its superchips for quite some time. The company even tried to acquire ARM, but the FTC blocked the acquisition. Nvidia has more new chips planned based on ARM, including a laptop chip named N1, which is based on the GB10 superchip.
Considering that, the latest Nvidia move is very surprising. CEO Jensen Huang is always thinking at least a couple of moves ahead, and we can’t see the whole picture yet.
On August 27, Nvidia (NVDA)  reported its results for Q2 of fiscal 2026.
Nvidia founder and CEO Jensen Huang stated: “Nvidia NVLink rack-scale computing is revolutionary, arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance. The AI race is on, and Blackwell is the platform at its center.”
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Revenue growth of 56% to $46.7 billion YoY
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Gross margin of 72.4%, compared to 75.1% in Q2 FY 2025
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Net income of $26.4 billion, an increase of 59% YoY
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Revenue is expected to be $54.0 billion, plus or minus 2%.
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Gross margin is expected to be 73.3%, plus or minus 0.5%.
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The company has not assumed any H20 shipments to China in the outlook.
On September 18, Nvidia and Intel revealed plans to develop multiple generations of custom data center and PC products together. Nvidia said it would invest $5 billion in Intel’s common stock.
Nvidia will buy and integrate custom Intel x86 server CPUs into its scaled-up rack architecture using NVLink, which was previously possible only for Nvidia’s custom Arm CPUs.
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Intel will build x86 system-on-chips that integrate Nvidia RTX GPU chiplets for the PC market.
Intel CEO Lip-Bu Tan offered additional details: “Intel’s leading data center and client computing platforms, combined with our process technology, manufacturing, and advanced packaging capabilities, will complement Nvidia’s AI and accelerated computing leadership to enable new breakthroughs for the industry.”
Following the Nvidia deal with Intel, Bank of America analyst Vivek Arya and his team updated their opinion on Nvidia shares.
The team noted that the timeline for each of the announced products remains unknown and could take one or more years to develop, which indicates limited near-term impact for peers (AMD and ARM) and potential upside for semiconductor capital equipment and electronic design automation companies.
