Nvidia Launches AI Chip for Laptops. Count NVDA Stock Out at Your Own Peril.

Count Nvidia (NVDA) CEO Jensen Huang out at your own peril. As murmurs started to gather that Nvidia's market-leading position in the age of inference and agentic AI will be challenged due to Alphabet's (GOOG) (GOOGL) tensor processing units or TPUs, Huang announced RTX Spark, a chip designed specifically for AI laptops. When others thought that customized chips, or ASICs as they are called, is not Nvidia's forte, they have come out with something as personal as it gets - PCs.

Unsurprisingly, valid fears of the cost of these laptops have arisen, especially when the memory shortage is acute. However, it must be taken into account that these laptops will likely cater to professionals such as content creators, software developers, and gamers, a cohort that would be willing to shell out a premium.

Yet, amid all the announcements by the company at COMPUTEX 2026, why has RTX Spark sparked such fierce discussions? 

Nothing Like It

Old Nvidia enthusiasts will find the launch of RTX Spark even more exciting as the company has put gaming as one of its primary focus areas in any of its latest developments for the first time in a long while. In fact, in the press release, the company categorically highlighted that these RTX Spark-powered laptops are built for creators and gamers with AI at the center.

The laptops are expected to be made available this fall and are going to be just 14 mm in thickness, weighing about three pounds, and have screen sizes of 14 to 16 inches. Notably, the OLED displays will come with Nvidia G-SYNC technology. Meanwhile, by integrating a 20-core Arm-based CPU (ARM) (developed with MediaTek) and a Blackwell-architecture RTX GPU with unified memory, Nvidia is positioning these machines as a direct premium alternative to both traditional x86-based Microsoft (MSFT) Windows PCs and Apple’s (AAPL) Silicon-based MacBooks.

The laptops will be from the stables of Lenovo (LNVGF), Dell (DELL), and Hewlitt Packard (HPE), among others, and are expected to start at a price range of $2,500-$3,500. With top-tier configurations, prices can soar to as much as $4,000-$5,000, as per industry estimates.

Coming to the capabilities of the chip, Nvidia claims that it will deliver one petaflop of AI computing power along with as much as 128 GB of unified memory. Consequently, this will enable creators, AI developers, and gamers to work with exceptionally large 3D scenes exceeding 90 gigabytes, edit high resolution 12K video in 4:2:2 format, produce 4K resolution AI videos, operate massive 120 billion parameter large language models locally with context windows reaching one million tokens through intelligent agents, and enjoy demanding AAA titles at 1440p resolution with frame rates surpassing 100 frames per second.

The closest competitors to this architecture currently in the market are the Apple M4 Max and Advanced Micro Devices (AMD) Ryzen AI Max+ 395 chips. While Apple’s memory bandwidth is unmatched, its NPU (38 TOPS) and integrated GPU compute (approx. 37 TFLOPS at FP16) cannot physically compete with the raw throughput of a dedicated Blackwell-class RTX graphics engine and CUDA ecosystem. On the other hand, the AMD Ryzen AI Max+ 395's memory bandwidth is capped at around 256 GB/s, and while its 40-Compute Unit Radeon GPU is highly capable, the entire SoC tops out at roughly 126 total INT8 TOPS, which is far below Nvidia's theoretical 1,000 TFLOPS FP4 ceiling.

As for agentic AI, Nvidia's collaboration with Microsoft is the USP. Keeping security at the core, these laptops will combine the capabilities of Nvidia's OpenShell runtime and new Windows security primitives to ensure complete control and security for the users. According to the company statement, “The new Windows primitives deliver identity, containment, policy, and end-to-end security capabilities to build and run agents natively. Nvidia OpenShell provides additional policy capabilities for the user to define what agents can and cannot do, the ability to intelligently route queries to local models based on the user’s privacy policies, and the ability to disguise personal information in queries sent to cloud models.”

Financials: Same Bull Story Remains Intact

Nvidia's latest quarterly results followed a familiar path: substantial growth, beats on both the top line and bottom line, and raised guidance.

The company's revenue grew by 85% from the previous year to $81.6 billion, with core data center revenues jumping by 92% in the same period to $75.2 billion. For Q2, Nvidia is expecting to clock revenues of $91 billion, without anything from China. Analysts' expectations for the same are at $91.73 billion.

Notably, in Q1, earnings came in at $1.87 per share, up 140% from the year-ago period. This was also much higher than the consensus estimate of $1.75 per share, making this the ninth consecutive quarter of earnings beat from the company. Meanwhile, gross margins expanded to 75% in the quarter from 60.8% in the prior year.

Cash flows also remained solid, with Nvidia reporting net cash from operating activities of $50.3 billion, up from $27.4 billion in the previous year. Overall, the company ended its fiscal Q1 with a cash balance of $13.2 billion, with short-term debt at much lower levels of $1 billion on its books.

And unlike its Magnificent Seven peers, NVDA's valuations are also not out of whack. Its forward price-to-earnings ratio of 26.26 times is below the sector median of 26.86 times, the forward price-to-sales and price-to-cash-flow are at 13.88 times and 25.88 times, compared to the sector medians of 3.76 times and 21.17 times, respectively. 

Overall, valued at a market cap of $5.43 trillion, NVDA stock is up 19.64% year-to-date (YTD).

Analyst Opinion

Thus, analysts remain bullish about Nvidia, earmarking it a rating of “Strong Buy”. The mean target price of $299.35 indicates an upside potential of 34.15% from current levels. Out of 49 analysts covering the stock, 43 have a “Strong Buy” rating, three have a “Moderate Buy” rating, two have a “Hold” rating, and one has a “Strong Sell” rating.