Key HighlightsA massive $35 billion cloud computing agreement between Anthropic and Lambda involves multiple Nvidia connections, including investments, hardware, and data center leasingCompany leadership disputes “circular financing” accusations while maintaining silence on specific financial arrangementsShares of NVDA started trading at $220.60, declining 1.1% during Tuesday’s premarket sessionThe chip giant delivered Q2 sales of $96.22 billion, representing a 105.9% year-over-year surge and surpassing projectionsMajor institutional players including State Street, Geode Capital, and Norges Bank have been accumulating positionsA new business arrangement involving Nvidia has triggered questions across Wall Street.The AI company Anthropic recently finalized a $35 billion cloud computing partnership with Lambda, a cloud infrastructure provider that counts Nvidia among its investors. The computing facility underlying this agreement is actually under lease to Nvidia, obtained from data center operator Hut 8. And what powers that facility? Nvidia’s semiconductor technology.NVIDIA Corporation, NVDAAdding another layer, Nvidia holds an equity stake in Anthropic. In essence, an AI firm with Nvidia backing is purchasing computing resources from a cloud company with Nvidia backing, utilizing infrastructure leased by Nvidia and equipped with Nvidia processors.This complex structure has reignited discussions about potential “circular financing” practices. Company leadership rejected this characterization during their latest quarterly earnings discussion, though Nvidia hasn’t disclosed key details about the arrangement, such as Lambda’s payment structure for the data center space or whether revenue from the Anthropic agreement flows back to Nvidia.The company declined to issue a statement before Tuesday’s early trading, when NVDA shares declined 1.1% to open at $220.60.A Growing Network of Strategic BetsThis transaction fits within a broader pattern. The semiconductor giant has assembled an extensive investment footprint spanning the artificial intelligence landscape. Recent positions or agreements encompass Corning, Marvell Technology, Lumentum, Coherent, CoreWeave, Nebius, Synopsys, Nokia, MediaTek, Intel, and SpaceX, alongside numerous smaller private enterprises.The approach seems intentional: secure sustained demand for its chip technology while capturing growth potential from its customers. The company also revealed a $3.5 billion commitment to MediaTek, deepening collaboration across data center infrastructure, edge computing platforms, and automotive intelligence systems.ARK Invest acquired approximately $53 million in NVDA shares after a post-earnings pullback, demonstrating persistent conviction from a prominent growth-focused investor.Wall Street analysts have been adjusting their outlooks upward. Needham elevated its price objective to $300 alongside a buy recommendation. Argus moved to $270, maintaining a buy stance. Goldman Sachs held its neutral position but increased its target to $300. The average analyst target stands at $324.23, with 50 of 55 monitored analysts maintaining buy or strong buy recommendations.Impressive Results, But Challenges LoomThe company’s latest quarterly performance was undeniably robust. Nvidia reported $96.22 billion in total revenue, representing a 105.9% year-over-year increase, alongside earnings per share of $2.22, exceeding the $2.09 consensus forecast. Net profit margin reached 63.66%, while return on equity hit 96.04%.Management also authorized an $80 billion share repurchase authorization in May and announced a quarterly cash dividend of $0.25 per share, scheduled for October 1 distribution to shareholders recorded as of September 10.However, supply chain constraints are intensifying. Shortages in memory modules, networking equipment, optical components, power infrastructure, and copper materials are creating potential headwinds. Rising component expenses could pressure gross profitability metrics despite demand continuing to outpace available supply.An internal initiative that would have enabled Nvidia to participate in cloud service revenues from previously sold hardware also attracted scrutiny, reportedly discontinued due to potential antitrust complications.Company executives have divested $299 million in shares during the past 90 days. NVDA’s twelve-month price range extends from $164.07 to $236.54.The post Nvidia (NVDA) Stock Faces Scrutiny Over $35B Anthropic-Lambda Cloud Partnership appeared first on Blockonomi.