NVIDIA shares rose in afternoon trading after the company publicly disputed reports suggesting a manufacturing-related postponement of its Kyber NVL144 rack-scale AI system. The Kyber platform, intended to host 144 Rubin Ultra chips, had been reported as facing a delay to 2028 - a development that had contributed to a sector-wide pullback the previous day. NVIDIA's statement asserted that the platform remains on schedule, directly addressing the concern that had opened the door for rivals to vie for AI server market share.
Market participants also weighed a separate report indicating that China plans to permit leading domestic AI firms - including Alibaba, ByteDance and DeepSeek - to purchase a limited number of H200 chips. That development introduces a competitive dynamic for AI chip distribution in China, and it factored into investor attention around supplier and customer positioning in the AI infrastructure supply chain.
Analyst commentary provided another affirmation for investors. Goldman Sachs highlighted NVIDIA's forward price-to-earnings ratio of roughly 21.7x as an attractive entry point, noting that it sits close to the broader S&P 500 average and well below NVIDIA's own five-year mean. The bank also pointed out that expected growth from rising hyperscaler AI capital expenditure is not yet fully priced into the stock's valuation.
The semiconductor group received an additional lift after Apple disclosed a chip-supply arrangement with Broadcom valued at over $30 billion. That agreement reinforced investor expectations for sustained spending on chips and related infrastructure, providing a sector-wide tailwind that helped NVIDIA and other technology and semiconductor listings recover some ground.
The broader market context was mixed to negative, however. The S&P 500 declined by 0.3% and the Dow Jones Industrial Average fell 1.1% as President Trump described the interim Iran deal as "over" during comments at a NATO summit and warned of potential additional military strikes. Oil prices jumped sharply in response to the geopolitical remarks. The Nasdaq was relatively resilient, trading near flat at -0.02%, which reflected continued interest in technology and semiconductor names amid the risk-off sentiment elsewhere.
Combined, NVIDIA's confirmation about its product timeline, a supportive valuation argument from a major Wall Street firm, and the broader semiconductor momentum tied to the Apple-Broadcom agreement allowed NVDA to post a notable rebound. The stock outperformed the wider market despite the elevated geopolitical risk and related market volatility.
Market snapshot: NVIDIA rallied following the denial of a report alleging a Kyber NVL144 delay; Goldman Sachs characterized the stock's forward P/E as attractively priced relative to peers and history; Apple and Broadcom's supply pact gave the sector incremental support even as geopolitical developments dampened broader indices.