NVDA's Hugging Face acquisition indicates a strategy to control the full tech stack; long-term upside expected from on-silicon model integration in 2-3 years.

Moving on to Nvidia, it started the week at $216 and saw a jump. In fact, it could reach an all-time high or return to its 52-week high near 236, ending the week up 6% at $230.

The company is acquiring "Hugging Face" for approximately $13 billion . For those who do n't know what "hagging face" is, I don't blame you. It is one of the worst-labeled companies in the world.

The way I described it in Equity Empire in a video this week is that " Hugging Face" is like Netflix for AI models. If you are a developer, and if you want to improve a model, or download it to your MacBook or DGX Spark , or if you want to get a collection of these models, or a quick model, or improve some things, then " Hugging Face" is the repository for all those models.

If you are launching a model to the public and want to spread it to the world, you do so via " Higging Face". Just as if you were producing a film or a television program, one of the distribution venues is Netflix.

Therefore, Nvidia's acquisition of this company was for approximately $13 billion.

I think this pretty much explains where Nvidia wants to be. They want to control the entire technology package. They are creating open-source models that are deposited in "Higging Face", and they obviously also want to know what the outcome of all this is.

Also, I do n't think this will happen next year. We're probably talking about the next two or three years where you start to carve some of the weights of these models onto the silicon itself, reducing reliance on memory and increasing performance.

I think Nvidia wants to be present in many ways, and having a close relationship with all models may allow them to develop similar technologies.

Now, the company is also investing in MediaTek, a custom silicon manufacturer that has acquired business from Google, among others.

Nvidia, wow, look at that move. There's clear resistance for the stock at these levels. 230. Will it form a double top here and then pull back to its moving averages, or will it break out?

We'll probably find out next week if the Anthropic file will impact the semiconductor sector.