• In early May 2026, NVIDIA announced new alliances with IREN and Corning to deploy up to 5 gigawatts of DSX-aligned AI infrastructure and to massively expand U.S. production of advanced optical connectivity for next-generation AI data centers.
• These deals signal NVIDIA’s push to secure critical data center capacity and optical components, tightening its grip on the full AI factory supply chain from compute to connectivity.
• We’ll now examine how locking in large-scale DSX AI factories with IREN could reshape NVIDIA’s longer-term investment narrative.

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NVIDIA Investment Narrative Recap

To own NVIDIA today, you need to believe that AI “factories” become a long-lived, global infrastructure buildout and that NVIDIA can keep selling not just chips, but full data center systems into that spend. The IREN and Corning deals reinforce this AI factory story by securing power, space and critical optics, but they do not materially change the near term focus on Q1 FY27 results or the key risk that hyperscalers keep pushing into custom silicon.

Among recent headlines, the multiyear NVIDIA Corning partnership looks especially relevant. By backing a 10x expansion in Corning’s U.S. optical connectivity capacity and funding new fiber and photonics plants, NVIDIA is trying to ensure that bandwidth and optics do not become the next bottleneck for DSX AI factories like those planned with IREN. For investors watching upcoming earnings and power or networking constraints, this tie up sits squarely in the catalyst column.

Yet in contrast, investors should also weigh how rising customer in house chips and stricter export rules could eventually challenge this AI factory story...

NVIDIA's narrative projects $572.4 billion revenue and $302.6 billion earnings by 2029. This requires 38.4% yearly revenue growth and about a $182.5 billion earnings increase from $120.1 billion today.

Uncover how NVIDIA's forecasts yield a $268.61 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Some analysts took a far more optimistic view before this news, assuming revenue could reach about US$452.7 billion by 2028 and earnings US$224.3 billion, so if you buy into that upside you are also accepting much bigger swings in outcomes around hyperscalers’ own chips and export rules.

Explore 271 other fair value estimates on NVIDIA - why the stock might be worth less than half the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your NVIDIA research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free NVIDIA research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NVIDIA's overall financial health at a glance.

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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.