
Lepton AI is a server rental startup specializing in Nvidia (NVDA)-powered AI chips. According to The Information, Nvidia is nearing a deal to acquire two-year-old Lepton AI for several hundred million dollars. Lepton raised an $11 million seed round in 2023 from investors, including CRV and Fusion Fund.
However, noted short seller Jim Chanos is sounding alarm bells about Nvidia following reports of this potential acquisition. In a post on X, Chanos wrote, “Trying to buyout your resellers is usually a huge red flag,” suggesting the move could indicate inventory management issues or efforts to avoid receivables provisioning.
The potential acquisition comes as Nvidia navigates broader challenges, including possible trade restrictions in China, where new energy efficiency rules could block access to its specialized processors.
Despite these headwinds, Nvidia continues to dominate the AI chip market, reporting fourth-quarter revenue of $39.3 billion — a 78% year-over-year increase — with first-quarter projections of $43 billion. This move follows Nvidia’s recent acquisitions of synthetic data startup Gretel and Israeli AI company Run.ai for $700 million.
CEO Jensen Huang has announced plans to invest hundreds of billions in U.S.-based chip manufacturing over the next four years, partly to mitigate risks from tightening export controls set to take effect in May 2025.

Is Nvidia Stock Still a Good Buy Right Now?
Valued at a market cap of nearly $2.7 trillion, Nvidia has returned more than 20,000% to shareholders in the past decade. Today, the chip maker is among the largest companies globally, while the tech stock is down 30% below its all-time highs. Despite its massive size, Nvidia continues to grow at an enviable pace. Its chips are used to build, train, and deploy artificial intelligence models such as ChatGPT and Claude.
During the recent GPU Technology Conference, Huang emphasized that the company is at the forefront of three key AI infrastructure areas: cloud data centers, enterprise IT, and robotics systems.
Huang stated that Nvidia’s $39.3 billion Q4 revenue (up 78% year-over-year) signifies the beginning of AI’s transformation. Nvidia expects revenue to reach $43 billion in the first quarter of its fiscal 2026 (ending in January), fueled by strong demand for new Blackwell architecture, which delivered $11 billion in revenue last quarter despite being in the early stages of deployment.
Huang highlighted a fundamental shift in computing paradigms, stating that “accelerated computing is the way forward” and that traditional data centers not built with accelerated computing “are being built wrong.” He expects “100% of the world’s data centers will be accelerated” before the decade ends.
A key insight from Nvidia’s presentations involves what Huang calls “AI factories” – specialized facilities dedicated solely to AI processing that will become essential to every industry. “Just as they have car factories, they have AI factories to power those cars,” Huang explained. “Every company that has factories will have an AI factory with it.”
Nvidia’s competitive advantage stems from its comprehensive approach: “We’re not just building a chip, we’re building networking and switches... we’re basically building systems components,” Huang noted.
Nvidia’s full-stack solutions provide superior performance, with Blackwell offering up to 25x higher token throughput and 20x lower costs than previous generations.
What Is the Target Price for NVDA Stock?
Looking ahead, Nvidia is already preparing Blackwell Ultra for the second half of 2025, with next-generation Vera Rubin architecture to follow, maintaining the company’s aggressive innovation cycle.
Wall Street expects Nvidia’s sales to increase from $130.5 billion in fiscal 2025 to $310 billion in 2030. Its adjusted net income is forecast to expand from $2.99 per share in 2025 to $7 per share in 2030. If the tech stock is priced at 30x trailing earnings, it will trade around $210 in March 2030, indicating upside potential of 90% from current levels.
Out of the 44 analysts covering Nvidia stock, 38 recommend “Strong Buy,” two recommend “Moderate Buy,” and four recommend “Hold.” The average target price for NVDA stock is $177.19, indicating upside potential of over 65% from current levels.
