By Daniel Foelber
Publication Date: 2026-08-18 14:20:00
Since the start of 2023, Nvidia (NVDA -2.15%) has given its shareholders a staggering 1,440% total return compared to a 113.2% total return for the S&P 500 (^GSPC -0.53%). As of market close on Aug. 14, Nvidia was the best-performing “Magnificent Seven” stock year to date and the only one outperforming the Nasdaq-100 — putting the chipmaker on track to beat the S&P 500 for the fourth straight year.
Here’s what investors need to know about Nvidia’s latest collaboration with major financial institutions, the risks involved, and why the deals could help Nvidia remain a long-term compounder for years to come.
Image source: Nvidia.
Underwriting AI infrastructure
Nvidia is now so massive that it takes considerable earnings growth to move the needle — specifically from its data center segment, which made up 92% of revenue in the first quarter of its fiscal 2027. It is heavily reliant on a handful of customers — such as hyperscalers and the leading developers of artificial intelligence (AI) models — to drive its earnings growth. That concentration is a double-edged sword. It is benefiting Nvidia right now because its key customers’ AI capital expenditures continue to climb. But its results could take a significant hit even if one or two of those customers pull back on spending.
To broaden its customer base, Nvidia signed memorandums of understanding with BlackRock, Blackstone, KKR, Apollo Global Management, Brookfield, and Goldman Sachs to pull together $500 billion in…
