• NVIDIA (NasdaqGS:NVDA) has launched its new AI data center CPU, Vera, designed specifically for the Chinese market.
• The company has also signed a multi year cloud infrastructure partnership with Australian AI firm Sharon AI.
• Recent activity includes deeper AI platform alliances with SK Group, LG, and NAVER, along with new blueprints for agentic and physical AI systems.

NVIDIA is already a key player in AI hardware and software, and the stock reflects that profile, with a current share price of $205.19 and a 5 year return of around 10x. Over the past year, the share price is up 44.7%, although it is down 13% over the past month, which highlights how quickly sentiment around AI leaders can shift.

Vera’s launch in China and the Sharon AI deal in Australia add new geographic and product dimensions that may matter for how investors think about NVIDIA’s long term mix of CPU, GPU, and cloud related revenue. These moves also add more partners building on NVIDIA’s full stack AI platforms, which can increase stickiness across data centers, consumer electronics, and internet services over time.

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Vera in China and the Sharon AI deal in Australia both point to NVIDIA widening its role from GPU supplier to full stack AI infrastructure partner, especially where capital or export controls have been friction points. Vera gives Chinese cloud providers a CPU path that fits current trade rules, while the Sharon AI agreement ties NVIDIA’s DSX factory design and Grace Blackwell GPUs into a revenue sharing model that can make large scale compute more accessible for startups, enterprises, and research users. When viewed alongside the deeper work with SK Group, LG, and NAVER on AI factories, robotics, and Omniverse based digital twins, these moves show NVIDIA working to embed its hardware, software, and reference architectures across data center build out, physical AI, and sovereign AI projects rather than relying only on traditional hyperscaler orders.

How This Fits Into The NVIDIA Narrative

• The Sharon AI collaboration supports the idea that AI infrastructure demand is broadening beyond US hyperscalers, with NVIDIA’s DSX and Grace Blackwell platforms showing up in new regions and business models that could underpin longer term data center revenue streams.
• At the same time, the need to pivot into CPUs like Vera for China, and to co invest or share revenue with partners, underlines the geopolitical and capital intensity risks flagged in the narrative, rather than removing them.
• The narrative focuses heavily on data center revenue and AI factories, but some of the more experimental elements here, such as agentic and physical AI systems with LG or sovereign AI with NAVER and SK Telecom, may not be fully reflected in current forecasts if adoption is slower or more fragmented than expected.

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The Risks and Rewards Investors Should Consider

• ⚠️ Analysts have flagged a high level of non cash earnings, so you may want to focus on how much of NVIDIA’s reported profitability is backed by cash generation as these partnerships scale.
• ⚠️ The Sharon AI structure leans on large future cloud revenue and credit support, which introduces counterparty and execution risk if local demand or financing conditions change, especially with so much capacity tied to one partner.
• 🎁 Earnings have grown very quickly over the past year and are forecast to keep expanding, and the Vera and Sharon AI deals line up with that by opening up fresh CPU and AI factory use cases across new geographies.
• 🎁 NVIDIA currently trades on a P/E below many semiconductor peers, and expanding into CPU, AI factory blueprints, and physical AI with SK Group, LG, and NAVER can help diversify demand beyond any single product cycle.

What To Watch Going Forward

From here, keep an eye on three things. First, whether Vera actually converts into material CPU share in China once orders start and how that balances any ongoing GPU export constraints. Second, how quickly Sharon AI ramps its 72 MW of capacity and whether the revenue sharing model shows up in NVIDIA’s reported data center or “other” lines as a stable, usage linked stream. Third, progress on the larger AI factory alliances in Korea and with LG and NAVER, including any disclosures on committed megawatts, rack deployments, or software attach rates that show NVIDIA’s role extending beyond chips into long term AI infrastructure templates.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.