Lambda Aims for $4 Billion Raise Before IPO Backed by NVIDIA

Lambda, a cloud-computing company supported by NVIDIA Corp (NVDA), is gearing up for a major funding round ahead of its potential initial public offering. On October 06, 2026, Lambda announced plans to raise up to $4 billion in its final funding round, which is expected to boost its valuation to roughly $14.5 billion, excluding the proceeds from this round.

The move highlights strong investor confidence in Lambda’s cloud-computing capabilities, particularly with NVIDIA’s backing. NVIDIA, a dominant player in semiconductors and accelerated computing, designs GPUs and data-center systems that power AI, gaming, and autonomous vehicle applications. The company’s leadership in AI infrastructure, through its CUDA platform and Blackwell architecture, makes it a critical supplier to cloud providers and AI developers worldwide.

According to GuruFocus’ proprietary GF Value™ metric, NVIDIA’s current share price of $240.20 is approximately 40.4% undervalued relative to its intrinsic value estimate of $403.34. Despite this undervaluation, the valuation label “Possible Value Trap, Think Twice” signals caution, indicating that investors should carefully assess risks before committing capital.

NVIDIA’s GF Score™ stands at an impressive 95 out of 100, reflecting robust overall fundamentals. The company’s strongest sub-ranks are profitability and growth, both scoring a perfect 10, highlighting its dominant market position and rapid expansion. Financial strength is also robust at 9/10, while valuation remains a relative weakness at 4/10.

GuruFocus tracks 33 premium gurus holding NVIDIA shares, with 20 trimming their positions and 12 adding in recent quarters. Insider activity over the past 12 months shows no insider buying and substantial selling totaling $2.12 billion, which could signal caution from those with the most intimate knowledge of the company’s prospects.