Street Calls of the Week
Investing.com - Rosenblatt maintained its Buy rating and $215.00 price target on NVIDIA (NASDAQ:NVDA), the $4.45 trillion market cap semiconductor giant trading near its 52-week high, following news of a potential partnership with OpenAI.
The partnership, outlined in a letter of intent, would involve deploying 10GW of NVIDIA systems to support OpenAI’s next-generation AI infrastructure.
The collaboration would secure OpenAI’s continued model development on NVIDIA’s hardware and software ecosystem, while OpenAI would gain access to $100 billion of NVIDIA’s investment to accelerate growth and ensure GPU deliveries.
Rosenblatt notes that NVIDIA’s projected free cash flow for fiscal year 2026 is approximately $100 billion, making this scale of investment feasible for the company.
The firm identifies several outstanding questions about the partnership, including deployment timeline, power sourcing, and return on investment, while observing that the move reinforces NVIDIA’s AI Factory vision and market dominance. InvestingPro subscribers can access over 20 additional key insights and a comprehensive Pro Research Report about NVIDIA’s market position and growth trajectory.
In other recent news, Nvidia has been making headlines with its strategic partnership with OpenAI. The company announced an investment of up to $100 billion to deploy 10 gigawatts of AI data centers, a move that could potentially generate approximately $350 billion in revenue through the end of the decade. Analysts at Barclays and DA Davidson have reiterated their positive outlook on Nvidia, maintaining an Overweight rating and a Buy rating, respectively, due to this significant collaboration.
Meanwhile, Iris Energy has expanded its AI Cloud capacity by doubling its GPU count to 23,000, which includes a substantial purchase of Nvidia GPUs. This expansion positions Iris Energy to aim for an annualized revenue run-rate of over $500 million by early 2026. Additionally, Elon Musk’s xAI has raised $10 billion in new funding, boosting its valuation to $200 billion. These developments highlight a growing momentum in the AI sector, with companies making substantial investments in infrastructure and capacity.
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