Did Nvidia CEO Jensen Huang Just Pull Off His Most Brilliant Move Yet?

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang runs the world’s largest company and his placement on the ‘Mount Rushmore’ of tech leaders is all but secured. Yet, what we’re seeing across the past six months might be his greatest work to date, and last night provided another coup for NVIDIA.

Yesterday, Meta Platforms (NASDAQ:META) announced a massive AI infrastructure partnership with NVIDIA, committing billions to GPU purchases as Meta spends $115-135 billion in capital expenditures this year. The announcement sent NVIDIA shares higher and lends mroe credence to what Huang has argued for months: the ASIC threat was overblown.

The ASIC Narrative That Threatened Everything

Heading into 2026, Wall Street was fixated on one existential question: would hyperscalers abandon NVIDIA for custom ASICs?

Meta, Google, Amazon, and Microsoft are all building their own chips to reduce GPU dependence. Companies aligned with Google’s ‘TPU’ complex have seen their shares soar. Amazon mentioned their homegrown Trainium chip 27 times on their most recent earnings call.

Broadcom (NASDAQ:AVGO) emerged as the poster child for this shift, with analysts betting on custom silicon displacing general-purpose GPUs. Broadcom has signed a series of contracts with hyperscalers, including with Meta.

Huang repeatedly pushed back throughout 2025. On the Q3 FY2026 earnings call, he emphasized that “Blackwell sales are off the charts, and cloud GPUs are sold out,” arguing ASICs were harder to deploy than expected and poorly suited for rapidly evolving AI workloads. The market remained skeptical. Broadcom’s stock climbed as investors bet on the ASIC thesis, while NVIDIA faced questions about the sustainability of its dominance.

Meta Chooses NVIDIA Over Its Own Chips

Then came yesterday’s announcement. Meta, which has been developing its own MTIA (Meta Training and Inference Accelerator) chips, committed billions to NVIDIA GPUs instead. Meta’s $115-135 billion capex guidance for 2026 makes it one of the world’s biggest AI infrastructure spenders, and a significant portion is now locked into NVIDIA’s ecosystem.

Barron’s framed the deal as a direct counter to the Broadcom ASIC threat, noting Meta’s choice sends a signal NVIDIA’s rivals can’t ignore. Details are currently light. We knew Meta was going to buy a ton of NVIDIA chips regardless, so the exact implications are unclear. Yet, Meta has also committed to scaling out with NVIDIA’s Spectrum-X Ethernet as part of the deal. The emphasis on scaling out with NVIDIA’s Ethernet solution was enough to send shares of Arista Networks (NYSE: ANET) plummeting overnight, although they have rebounded in early trading.

The validation runs deeper than dollars. Meta CEO Mark Zuckerberg has staked the company’s future on “advancing personal superintelligence for people around the world in 2026.” That vision requires massive compute, and Meta is giving a major stamp of approval on NVIDIA’s Blackwell architecture (and later Vera Rubin) over its own custom silicon.

What Happens Next?

The Meta deal could mark an inflection point. NVIDIA shares have traded mostly sideways in recent months despite almost nothing but good news for the company. My bold prediction: NVIDIA is now set up to deliver more than $9 in EPS this fiscal year, perhaps going as high as $10.

Wall Street is currently expecting $7.76 in earnings, and that figure would constitute a doubling in earnings from last year when NVIDIA delivered $4.69 in adjusted profits. If NVIDIA delivers on those lofty targets, it would be trading at only about 18 to 20X forward earnings despite continuing astonishing levels of growth.

Zooming further out, Huang just continues beating rivals to the punch. He successfully lobbied to get export-compliant Blackwell chips into China and has been traveling across Asia securing the company’s supply chain in vital markets like manufacturing and memory.

Huang was already on the business Mount Rushmore, but what he’s pulled off in the past year just might make him the GOAT.