Story perspectives

Nvidia seals $3.4B AI cloud deal, multi-billion fiber prepay

5/11/2026

Summary

Nvidia AI Deals

Nvidia announced AI deals with IREN and Corning, pairing a $3.4 billion cloud contract with a multi-billion-dollar prepayment for fiber factories.
IREN granted Nvidia a five-year option to buy up to 30 million $70 shares and to run Blackwell systems at its Texas campus.
Nvidia shares closed Friday at $215.20, 1.75% and valuing it at $5.27 trillion, with Q1 results due May 20 and CFO Colette Kress set to issue commentary before a Q&A.

Summary

Nvidia Eyes $20T

Analyst Brad Gerstner and analyst Beth Kindig say Nvidia could hit $10 trillion and $20 trillion caps, 100% and 300% upside from its $5 trillion valuation.
Morgan Stanley forecasts hyperscalers to raise 2026 capex 80% to $805 billion and 2027 to $1.1 trillion.
Nvidia held 86% of AI-accelerator sales in 2025, unchanged from 2024.
Nvidia’s forward P/E is 25, below AI-boom average, with past earnings showing modest short-term gains and over 100% annual gains.

Summary

Nvidia Backs Nokia

Nvidia invested $1 billion in Nokia by issuing new stock at $6.01 per share.
Nokia’s shares climbed from $4 to near $13, a 16-year peak after the AI-RAN deal.
The deal embeds Nvidia’s GPU AI in Nokia’s RAN to improve spectrum use, lower energy and support AI traffic.
Analysts cite 6G timing and telecom competition as risks to Nokia, whose market cap stands at $72 billion.

History

Historical Context

AlexNet’s September 30 2012 victory in the ImageNet challenge—cutting top-5 error to 15.3%, a 10.8-point drop—proved that deep CNNs trained on two Nvidia GTX 580 GPUs could outperform traditional vision methods. The breakthrough, built on Fei-Fei Li’s 2007 ImageNet dataset and Geoffrey Hinton’s advocacy, ignited demand for GPU hardware, paving the way for Nvidia’s multibillion-dollar AI-accelerator contracts today.

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Nvidia AI Deals

Nvidia announced AI deals with IREN and Corning, pairing a $3.4 billion cloud contract with a multi-billion-dollar prepayment for fiber factories.
IREN granted Nvidia a five-year option to buy up to 30 million $70 shares and to run Blackwell systems at its Texas campus.
Nvidia shares closed Friday at $215.20, 1.75% and valuing it at $5.27 trillion, with Q1 results due May 20 and CFO Colette Kress set to issue commentary before a Q&A.

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