Wolfe Research Calls Nvidia’s RTX Spark PC Chip Rally Unjustified
NVDA•Wolfe Research says Nvidia and Arm’s RTX Spark PC chip, launching fall 2026 above $2,500, drives an unjustified $360 billion combined market cap gain that equates to $1.3 billion per annual unit sold and targets a “very limited” segment. Industry analysts note Nvidia’s hidden multi-billion-dollar networking business could emerge as the next AI infrastructure growth driver beyond GPUs for data centers.
1. Wolfe Research Labels PC Launch Overhyped
Wolfe Research says the combined $360 billion market cap gain following the Nvidia and Arm PC chip announcement is a significant overreaction, arguing that the RTX Spark chip's high price point above $2,500 targets a very limited unit opportunity and cannot justify the rally.
2. Addressable Market Concerns
The firm highlights that Qualcomm's Arm-based Snapdragon X Elite, priced between $1,000 and $1,500 since 2024, has seen minimal traction, reinforcing doubts about broader PC demand and suggesting Nvidia's PC push may not meaningfully drive revenue growth.
3. Networking Business Outlook
Analysts also highlight that Nvidia's networking segment, a multi-billion-dollar business currently subsumed under compute revenues, could become the next substantial growth avenue as AI data centers require advanced networking infrastructure beyond GPUs.
