📉 Nvidia, the Hugging Face Acquisition Rumor and the Test of AI Chip Competition - 2026.09.04

Hi, it’s Peanuts. Nvidia’s new point of focus is that reports of a Hugging Face deal and Broadcom’s AI chip outlook have appeared on the same screen. One concerns ecosystem expansion, while the other points to a possible shift in the competitive landscape. Is that really the case? Let’s first separate the reports from the confirmed facts.

Hugging Face Deal: Confirmation Conditions Matter Before the Size 💼

Yonhap News reported that Nvidia is seeking to acquire Hugging Face and bring the open AI hub into the Nvidia ecosystem ^[1]. Meanwhile, The Star reported that Nvidia is pursuing a deal with Hugging Face this week, while noting that whether the deal will be completed and its specific terms have not been confirmed ^[2]. Both reports discuss the possibility of a deal, but it still seems difficult to treat an acquisition as finalized and its terms as disclosed in the same sentence.

What matters here is not the acquisition amount itself, but what Nvidia is trying to bring inside the company. Since Hugging Face has been described as an open AI hub, if this deal is real, it would connect with the explanation that Nvidia is expanding its AI ecosystem. However, until the company’s official announcement, completion of the deal, and actual scope of integration are confirmed, there is a considerable gap in interpretation. Until the contract is signed, the conditions table is more valuable information than the number.

Is Broadcom’s Outlook Really a Fact That Immediately Challenges Nvidia’s Dominance? ⚠️

IT Chosun reported that Broadcom said its AI chip revenue would double in 2027 ^[3]. This should be viewed only as a forecast presented by Broadcom; it does not mean that any specific result for Nvidia’s market share or earnings has been confirmed. The materials also did not separately provide a company-confirmed result or the certainty of the forecast.

Still, it raises a new question in how we view Nvidia. Will growth in the AI chip market continue as a one-company run led by Nvidia, or will competitors’ revenue growth outlooks broaden the available choices? What can be verified here is Broadcom’s statement, while the impact on Nvidia remains conditional. In short- to medium-term swing trades, the gap between such expectations and confirmation can turn into valuation pressure. The possibility of a value trap ultimately depends not on the growth rate itself, but on how long that growth rate can be sustained.

Earnings Assessment Is Positive, but Expressions and Numbers Must Be Separated 📊

Weekly Donga assessed Nvidia’s second-quarter results as an achievement demonstrating the continued strength of AI investment and its market dominance ^[4]. This is an assessment introduced by the publication, rather than an official confirmed figure from the company. Therefore, the interpretation that earnings were strong and the conclusion that the same momentum will continue should be considered separately.

Looking at recent share-price moves, Nvidia’s closing price on September 3 was $228.60, up +1.87% from the previous day, with trading volume at 112,730,204. On August 27, the stock rose +8.74%, followed by -4.58% on August 28, so even the numbers show expectations and reassessment crossing quickly. It is also worth remembering that the available materials do not provide valuation metrics such as PER or EV. Optimism without numbers cannot be put into a spreadsheet.

Even Small Cracks in Market Sentiment Can Matter 🛑

Yahoo Finance published an article asking whether AI semiconductor stocks may have reached a peak, based on billionaire Dan Loeb’s withdrawal of investments from Nvidia and Broadcom ^[5]. However, one person’s withdrawal of investment alone cannot establish a market top or determine Nvidia’s corporate value. This is closer to a sentiment variable than to earnings or confirmed deal news.

Peanuts sees this issue as a moment when ecosystem expansion and intensifying competition are being tested at the same time. The remaining questions are the final terms and official confirmation of the Hugging Face deal, what Broadcom’s 2027 outlook actually means for the competitive landscape, and whether the assessment of Nvidia’s second-quarter performance will continue in its next earnings report.

📰 Reference News (5)

1

Nvidia to Acquire Hugging Face for 17,500,000,000,000 KRW… Open AI Hub to Become Part of Its Ecosystem - Yonhap News

연합뉴스 · 2026.09.03

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2

Nvidia nears US$14bil deal this week for startup Hugging Face - The Star

The Star · 2026.09.02

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3

Broadcom Says “AI Chip Revenue to Double in 2027”… Could Nvidia’s Dominance Be Shaken? - IT Chosun

IT조선 · 2026.09.03

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4

“Nvidia’s Second-Quarter Results Demonstrate the Continued Strength of AI Investment and Its Market Dominance” - Weekly Donga

주간동아 · 2026.09.02

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5

Billionaire Dan Loeb Exited Nvidia and Broadcom. Is He Calling the Top in AI Chips? - Yahoo Finance

Yahoo Finance · 2026.09.03

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