This article first appeared on GuruFocus.

Oct 1 – Nvidia (NASDAQ:NVDA) shares slipped Wednesday morning after touching a record $4.5 trillion valuation earlier this week.

The dip followed Meta’s (NASDAQ:META) announcement that it will acquire AI chip startup Rivos, a move that underscores the tech giant’s ambition to expand its custom silicon program and reduce reliance on Nvidia hardware.

• Warning! GuruFocus has detected 5 Warning Signs with NVDA.

• List of 52-Week Lows

• List of 3-Year Lows

• List of 5-Year Lows

• Is NVDA fairly valued? Test your thesis with our free DCF calculator.

The deal strengthens Meta’s MTIA initiative, which launched in 2023 in collaboration with Broadcom. These chips are designed to handle training and inference tasks in Meta’s data centers, offering the potential to lower costs and improve efficiency. Meta executives emphasized that bringing Rivos’ expertise in AI system design in-house should speed up development.

Despite this push toward independence, Meta continues to invest heavily in Nvidia-powered infrastructure. Just last week, the company struck an agreement worth up to $14.2 billion with CoreWeave, a cloud provider that rents Nvidia-based compute capacity.

Based on the one year price targets offered by 53 analysts, the average target price for NVIDIA is $214.95 with a high estimate of $389.73 and a low estimate of $100.00. The average target implies a upside of +14.97% from the current price of $186.96.

Based on GuruFocus estimates, the estimated GF Value for NVIDIA in one year is $320.57, suggesting a upside of +71.46% from the current price of $186.96.