Nvidia’s Jensen Huang Says AGI Has Arrived. Here’s the Part Many Investors Are Ignoring.

Nvidia’s Jensen Huang Says AGI Has Arrived. Here’s the Part Many Investors Are Ignoring.

Jabran Kundi

Thu, September 10, 2026 at 7:02 PM GMT+3 5 min read

• NVDA -0.03%

Nvidia (NVDA) CEO Jensen Huang has never been shy about artificial intelligence (AI), but he recently went further than usual. After OpenAI released GPT-6 Astra, Huang posted on X that "AGI has arrived," meaning AI as capable as a human. Huang noted how far the technology had come from ChatGPT to Astra in just four years, and added that the model was trained on more than 100,000 of Nvidia's Grace Blackwell NVLink72 systems.

​The numbers behind Astra are hard to ignore. OpenAI says it scored 98% on FrontierMath Tier 4, 99.9% on ARC-AGI-3, and a perfect 100% on ExploitBench, nearly perfecting tests meant to challenge the best AI models. OpenAI says Astra can use a computer on its own. Instead of just answering questions, the model can click through websites, apps, and files to finish tasks the way a person at a desk would. It is worth remembering that OpenAI itself has been more cautious about calling this AGI. OpenAI President Greg Brockman has spoken of an "AGI era," but the company has stopped short of the flat declaration Huang made.

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Critics like Gary Marcus quickly noted there is still no agreed definition of what AGI even means. So not everyone accepts the label, and it is a bold claim to make, especially from the man whose company sells the hardware behind it.

The Number That Actually Matters

For Nvidia investors, the most important part of Huang's post is easy to miss. Right at the end, he wrote, "400K GPUs coming online next." That is the real demand signal. Huang supplies those chips, so when he says the buildout is accelerating, the market has reason to pay attention.

Astra also shows why Nvidia made that bet years ago. The company redesigned its systems to wire 72 GPUs together to act as one. It was a costly move that makes training huge models far cheaper. Astra is exactly the kind of workload that architecture was built for, which makes the next wave of orders far easier to justify.

​The risk runs the other way, too. If independent testing later shows Astra isn't as advanced as the AGI claim suggests, that could become a problem. The gap between the marketing and the actual value could become the next thing investors worry about. For now, the claim is helping drive huge AI spending, and a large share of it ends up at Nvidia.

About Nvidia Stock

Nvidia designs the graphics chips and AI computing systems used to train and run advanced AI models. Its Grace Blackwell systems, the hardware behind OpenAI's GPT-6 Astra, anchor today's AI buildout, along with its data center, gaming, and automotive lines. Founded in 1993, Nvidia is based in Santa Clara, California, and led by co-founder and CEO Jensen Huang.

Year-to-date (YTD), NVDA stock is up roughly 17%, outperforming the S&P 500's ($SPX) 11% gain during the same period. In late March, the stock hit its 52-week low of $164.07. Since then, it has recovered strongly, climbing 33% to its current share price near $218 per share. NVDA stock now sits relatively close to its 52-week high of $236.54.

Nvidia's valuation looks attractive. The forward price-to-earnings (P/E) ratio of 25.3 times sits well below its five-year average of around 52 times, while the price-to-sales (P/S) ratio of 25.1 times sits a bit above its five-year average.

The EPS outlook is also strong. Analysts expect earnings growth of 99% in fiscal 2027, followed by 66% growth in fiscal 2028. That fast growth is exactly what a demand signal like Huang's "400K GPUs coming online" points to. The balance sheet is another genuine strength, with Nvidia comfortably net cash positive.

For investors, NVDA stock looks cheaper than its own past, right as the AI expansion it depends on keeps growing.

Data Center Doubles as AI Demand Runs Hot

Nvidia reported its second-quarter fiscal 2027 earnings on Aug. 26. The firm beat Wall Street consensus estimates on both key metrics. Revenue of $96.2 billion rose 106% from a year earlier, beating the $92.2 billion analysts expected. Non-GAAP EPS of $2.22 also topped the $2.10 consensus estimate.

The standout was the data-center segment, which alone brought in $89 billion, or about 92% of total revenue, growing 117% year-over-year (YOY). CEO Jensen Huang said that AI has reached its inflection point, with compute now turning into revenue as demand accelerates.

For Q3, Nvidia guided revenue to $108 billion, above the $104 billion analysts have projected. What makes this figure even more impressive is that the company is not assuming any data-center sales to China. Due to the rising memory costs, though, management expects margins to slip toward 71% to 72% by Q4. Nonetheless, the guidance points to another steep jump, which suggests the AI buildout is expected to keep growing.

What Do Analysts Expect for Nvidia Stock?

In late August, following the strong earnings report, a number of analyst firms increased their price targets for Nvidia. Citi stated that the company reported better-than-expected results due to robust AI demand, increasing its price target from $300 to $315 while reiterating a "Buy" rating. Similarly, Phillip Securities and Stifel Nicolaus increased their price targets to $300 and $315, respectively, while maintaining "Buy' ratings.

Based on 50 Wall Street analysts, Nvidia stock holds a consensus "Strong Buy" rating. The mean price target of $325.17 indicates healthy potential upside of 49% from current levels.

On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com