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Investing.com - DA Davidson has reiterated a Buy rating on Nvidia (NASDAQ:NVDA) stock with a price target of $210.00 following the announcement of a major partnership with OpenAI. Currently trading at $183.61, near its 52-week high of $184.55, NVDA maintains an "EXCELLENT" financial health score according to InvestingPro analysis.
The reiteration comes after Nvidia and OpenAI jointly announced a letter of intent for OpenAI to deploy at least 10 gigawatts of Nvidia systems for both training and inference of OpenAI’s future models.
As part of the agreement, Nvidia plans to invest up to $100 billion in OpenAI progressively as each gigawatt is deployed, representing a significant financial commitment to the AI company.
DA Davidson views the announcement as positive for OpenAI’s ability to scale its operations but expressed concern that Nvidia has become the "investor of last resort," potentially bailing out OpenAI’s overextended commitments.
Despite these concerns about Nvidia’s investment strategy, DA Davidson maintained its Buy rating and $210 price target on the semiconductor company’s stock.
In other recent news, Nvidia announced a strategic partnership with OpenAI, which involves deploying at least 10 gigawatts of AI data centers using Nvidia systems. This collaboration could see Nvidia investing up to $100 billion over time, as noted by Bernstein SocGen Group, which reiterated its Outperform rating with a $225 price target. Benchmark also maintained its Buy rating with a $220 price target, highlighting the significance of this partnership. Rosenblatt Securities echoed this sentiment, reiterating a Buy rating and setting a $215 price target. Evercore ISI raised its price target for Nvidia to $225 from $214, maintaining an Outperform rating and citing the potential increase in Nvidia’s total addressable market due to the OpenAI deal. These developments reflect a strong positive outlook from multiple analyst firms regarding Nvidia’s future prospects with OpenAI.
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