OpenAI is aggressively expanding its data center capacity to meet massive AI demand, planning one-gigawatt sites in India and the U.S. This move aligns with Nvidia’s outlook, projecting significant growth in AI infrastructure spending, which could reach trillions by the decade’s end. To support this expansion, a single gigawatt “AI super-factory” could require around $50 billion in Nvidia hardware and additional gear. OpenAI’s collaboration with Oracle aims for 4.5 gigawatts of capacity, emphasizing the need for powerful, networked computing systems.
Investors are optimistic about Nvidia, maintaining a “Strong Buy” consensus from 34 out of 38 analysts. Despite recent stock fluctuations, the sustained demand for AI infrastructures can bolster Nvidia’s growth trajectory. However, risks such as financing and supply chain issues could impact timelines. Analysts suggest monitoring project developments and purchasing trends in AI infrastructure for continued investment opportunities. The average 12-month price target for Nvidia stands at $208.86, indicating significant upside potential.
Source link
