NVIDIA Corp. (NVDA) is accelerating its AI infrastructure push, beginning shipments of next-generation networking switches developed with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), while CEO Jensen Huang argues the economics of artificial intelligence have become "insanely profitable."

NVIDIA Begins Shipping New AI Networking Switches

On Thursday, the Taipei Times reported that NVIDIA has begun shipping its new Spectrum-X copackaged optics (CPO) switches, developed with Taiwan Semiconductor, to select partners. The report cited remarks from NVIDIA Senior VP of Networking Gilad Shainer at the company's GTC event in Taipei on Wednesday.

The switch delivers up to 400 terabits per second of throughput and is designed to improve data transmission efficiency while reducing power consumption in AI data centers. Production capacity is expected to expand in the second half of 2026, Shainer said.

NVIDIA Director of Product Marketing for Data Center GPUs and AI Training Shar Narasimhan described Taiwan's technology ecosystem as an indispensable partner as the company works to expand AI factory production and meet growing global demand for computing power, the report added.

Huang Defends AI Returns And Funding Needs

Meanwhile, NVIDIA CEO Jensen Huang pushed back against concerns that AI spending may not yield returns.

Speaking at a closed-door Taipei event for financial institutions and wealthy family offices, Huang said AI returns have changed sharply in recent months, Bloomberg reported on Wednesday.

"Only for the last six months has the ROI been completely reset. It is now insanely profitable," Huang said. Huang also challenged investors who still question the profitability of AI infrastructure spending.

Huang highlighted NVIDIA's broader partner ecosystem, including Micron Technology Inc. (MU), SK Hynix, and Taiwan Semiconductor.

He also said AI infrastructure needs more than technology, pointing to land, power, energy, and financing as essential inputs. "You need land, power, you need energy, but you also need financing," Huang said.

NVIDIA Pulls Back Amid Risk-Off Mood

NVIDIA stock fell nearly 1% in premarket trading Thursday as a broader sell-off in technology stocks weighed on Nasdaq-linked names. Nasdaq futures were down 1.28%, while S&P 500 futures lost 0.44%.

Despite the pullback, NVIDIA remains in a longer-term uptrend, up 51.3% over the past year and trading above its 50-day, 100-day and 200-day moving averages.

The stock is about 3.4% below its 20-day moving average, suggesting a short-term consolidation phase. Traders are watching resistance near $217 and support around $209.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the August 26, 2026 (estimated) earnings report.

• EPS Estimate: $2.04 (Up from $1.04 YoY)
• Revenue Estimate: $91.70 Billion (Up from $46.74 Billion YoY)
• Valuation: P/E of 32.9x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $324.04. Recent analyst moves include:

• Needham: Buy (Maintains forecast to $270.00) (June 2)
• DA Davidson: Buy (Maintains forecast to $300.00) (June 1)
• Tigress Financial: Strong Buy (Raises forecast to $425.00) (May 27)

NVDA Stock Price Activity: NVIDIA shares were down 0.78% at $212.83 during premarket trading on Thursday.