Nvidia (NASDAQ:NVDA) is making headlines with its plan to invest up to $100 billion in OpenAI to enhance data center capacities, starting with 10 GW systems in 2026. Analyst Vivek Arya from BofA projects this could generate $300-$500 billion in revenue, representing a 3x–5x return on investment. The partnership positions Nvidia as a preferred compute and networking provider for OpenAI, increasing competitive pressures on firms like Broadcom and AMD. While the deal raises questions regarding customer financing perceptions, Arya views it as a strategic use of Nvidia’s significant free cash flow, which is expected to yield hundreds of billions in revenue by 2026. He maintains a “Buy” rating on NVDA with a price target of $235, indicating a 28% upside. Overall, a Strong Buy consensus among analysts amplifies the stock’s potential, with an average target of approximately $211.97, suggesting a potential one-year gain of 15.5%.
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