Nvidia Holds Strong as Reddit Debates the AI Chip Landscape

Nvidia remained the most-mentioned ticker across Reddit, with 622 comments across 10 posts and a bullish-leaning sentiment score of 0.54.
A detailed value-investing analysis on r/ValueInvesting made a strong case for Nvidia as a buy, citing its latest earnings beat and TTM metrics compared to AMD and Micron.
News broke that Nvidia is entering the standalone server CPU market with its Vera processor, projecting a $200 billion TAM by 2027.

On Tuesday, May 26,

$NVDA claimed the top spot among Reddit's most-discussed stocks, fueled by a mix of a high-drama options trading story, a deep-dive value analysis, and a major news story about the company's expansion into the server CPU market. The ticker generated 10 posts and 622 comments across the platform, with a positive sentiment score of 0.54, reinforcing its standing as the central focus of retail-investor conversation in the AI and semiconductor space.

Earnings Power a Bullish Thesis

The most substantive discussion came from r/ValueInvesting, where a post titled

"Is Nvidia worth checking out again right now?" presented a bullish case grounded in the company's latest financials. The post highlighted

$NVDA revenue of $81.6 billion, earnings of $1.87 per share, and data center revenue of $75 billion, all of which exceeded expectations. A TTM comparison chart included in the post showed Nvidia leading against

$AMD and

$MU across key valuation and growth metrics, underscoring the view that Nvidia remains the strongest pick in the AI chip space.

The post argued that while other semiconductor stocks like Micron and AMD have "skyrocketed," Nvidia has only participated in the rally "to a very limited extent," suggesting it may be undervalued relative to its peers.

Nvidia's Server CPU Ambitions Dominate the News Cycle

A second major theme emerged from a news article that circulated widely on Tuesday: Nvidia is entering the standalone server CPU market with its next-generation Vera processor. The article, published by The Motley Fool, projected that Nvidia could capture a significant share of a $200 billion total addressable market by 2027, using Arm-based architecture to challenge AMD and Intel in their traditional x86 stronghold.

This news provided a fresh catalyst for Reddit discussions, as it reinforced Nvidia's narrative as the dominant force in AI infrastructure, now expanding into a core computing segment. The move was framed as a direct competitive threat to AMD and Intel, whose data center CPU businesses could face pressure from Arm-based alternatives increasingly preferred by hyperscalers.

$NVDA

A Cautionary Tale from r/wallstreetbets

Not all the conversation was bullish. A highly upvoted post on r/wallstreetbets told a cautionary tale about the risks of trading Nvidia options. The author described a disastrous date that ended with him watching his

$NVDA calls go "from -40% to -97% in real time." While the post was written for entertainment value, it served as a reminder of the volatility inherent in short-dated options plays, even on a stock with as strong a fundamental backdrop as Nvidia.

The same subreddit also saw a discussion about the long-term bearish case on semiconductors, with one user arguing that the triple-leveraged bear ETF

$SOXS is "destined to die" barring a major exogenous event, citing the strength of Nvidia, AMD, and other leading chipmakers.

Looking Ahead: Pre-Market Options and the Broader AI IPOs

Two other pieces of news provided additional context for Nvidia traders. First, the CBOE announced it will begin offering pre-market options trading for select stocks, including

$NVDA, starting in July. This development was met with interest on Reddit, as it could allow traders to react to overnight news and earnings with options positions before the regular session opens.

Second, a broader article noted that pending IPOs from SpaceX and OpenAI in 2026 could bring $3 trillion in new market capitalization, serving as a "referendum on tech valuations." As the key supplier of AI hardware, Nvidia's position could be directly influenced by the public-market appetite for AI-related growth stories.

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