Forget Nvidia's Chips: Hugging Face Is the Real Reason to Own This Stock Now
Nvidia's Hugging Face deal looks expensive based on current revenue, but the real opportunity could lie much deeper in the AI ecosystem.
Overview
Nvidia (NASDAQ: NVDA) remains the dominant supplier of graphics processing units (GPUs) used to train and run artificial intelligence (AI) models. However, its latest acquisition suggests the company also wants a stronger position in how developers choose and deploy those models.
On Sept. 2, Nvidia agreed to acquire Hugging Face, paying $11.9 billion to Hugging Face's shareholders and up to $1 billion in equity awards for employees joining Nvidia. The deal is expected to close in the first half of 2027, subject to regulatory approvals.
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Originally published at www.fool.com.
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