TD Cowen Keeps Nvidia Buy After UK, China Deals

TD Cowen reaffirmed its buy rating on Nvidia on Thursday, calling the company “the market leader in terms of performance and breadth of software ecosystem.” The move came one day after Google introduced new training and inference chips and as Nvidia disclosed a series of partnerships across telecom, cloud and automotive sectors.

In the United Kingdom, telecom operator BT and cloud infrastructure firm Nscale plan to build AI data centers using Nvidia’s full-stack infrastructure. Nscale intends to deploy up to 14 megawatts of AI capacity across three existing BT sites, while BT will provide connectivity to support higher compute demand. The partners say the facilities will allow organizations to run AI systems on UK soil and will offer services to both private and public sector customers, including analysis of sensitive healthcare records and applications in energy, finance and security.

In China, Nvidia and auto supplier Desay SV are preparing to present an intelligent driving system at the Beijing Auto Show built on Nvidia’s DRIVE AGX Thor platform. The setup links two AGX Thor chips via NVLink to deliver up to 4,000 FP4 teraflops of compute and is aimed at Level 3 and Level 4 autonomous driving. The design runs on edge-side computing rather than relying on the cloud, which the companies contend improves real-time performance, data security and reliability for highway and urban driving.

Supply-chain problems surfaced elsewhere in the Nvidia ecosystem. Super Micro Computer shares fell about 10% on Thursday after reports that Oracle canceled an order for GB300 NVL72 server racks. Research firm Bluefin estimated the order at roughly $1.1 billion to $1.4 billion for 300 to 400 racks and linked the cancellation to a lawsuit involving a Super Micro co-founder accused of smuggling AI graphics processors to China. Industry sources reported that Wistron NeWeb has taken over some of the racking business that Super Micro lost.

Sources in the supply chain described a “considerable” build-up of unsold B200 GPU inventory as buyers shift toward newer GB200 NVL72 racks. Contracts for the newer racks were awarded to Dell and Hewlett Packard Enterprise rather than Super Micro, contributing to the inventory imbalance.

Analysts noted that distribution and contracting issues can complicate deployment even when demand for chips remains high. TD Cowen did not change its view in response to Google’s chip announcement and cited Nvidia’s software ecosystem and performance lead as reasons for maintaining the buy rating. Some market participants expect supply and distribution issues to be resolved over time, though no clear timeline has emerged.

Nvidia has expanded partnerships across cloud, telecom and automotive infrastructure while competitors introduce alternative AI chips. The combination of new deals, contract shifts and excess inventory highlights logistical challenges for equipment makers and data center operators as hardware contracts move through the supply chain.