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Investing.com - Evercore ISI has raised its price target on Nvidia (NASDAQ:NVDA) to $225.00 from $214.00 while maintaining an Outperform rating, citing the company’s recent deal with OpenAI. This aligns with the broader Wall Street sentiment, as InvestingPro data shows 29 analysts have recently revised their earnings estimates upward, with the stock trading near its 52-week high of $184.55.
The increase follows a callback with Nvidia’s CFO regarding the OpenAI partnership, which involves at least 10GW of AI infrastructure. Historically, Nvidia’s total addressable market was $30 billion to $40 billion per gigawatt, though the firm notes this could be higher going forward. This expansion potential is reflected in Nvidia’s impressive 71.55% revenue growth over the last twelve months.
Evercore confirmed the deal will include GPUs, racks, networking, and software components, positioning Nvidia as OpenAI’s preferred supplier for its infrastructure buildout. The arrangement comes as OpenAI seeks to address underestimated demand for its solutions.
The research firm has increased its second-half 2026 revenue estimate for Nvidia by $5.5 billion, using Colossus, Prometheus, and Project Rainier as benchmarks for the projection. Evercore emphasized this OpenAI deal is additive to Nvidia’s previous expectations.
Evercore ISI has reiterated Nvidia as a top pick, expressing confidence that Nvidia "remains the AI ecosystem play of choice" and suggesting that current Street estimates for the company are too conservative. InvestingPro’s comprehensive analysis reveals an excellent overall financial health score, with particularly strong profitability metrics. Discover 20+ additional exclusive insights and detailed valuation analysis with an InvestingPro subscription.
In other recent news, Nvidia has announced a significant strategic partnership with OpenAI, planning to invest up to $100 billion in AI infrastructure. This collaboration involves deploying at least 10 gigawatts of Nvidia systems to support OpenAI’s next-generation AI models. Analysts from Rosenblatt, Barclays, and DA Davidson have reiterated their positive ratings on Nvidia following this development. Barclays highlighted that the deal could potentially generate approximately $350 billion in revenue for Nvidia by the end of the decade. Rosenblatt and DA Davidson have set price targets of $215.00 and $210.00, respectively, underscoring their confidence in the partnership’s impact. Meanwhile, Iris Energy has expanded its AI Cloud capacity to 23,000 GPUs, including a significant number of Nvidia units. The company aims to achieve more than $500 million in AI Cloud annualized run-rate revenue by early 2026. These recent developments reflect the growing emphasis on AI infrastructure and capacity expansion in the tech industry.
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