Nvidia stock gains as Rosenblatt reiterates Buy rating on OpenAI partnership

Investing.com - Rosenblatt Securities has reiterated its Buy rating and $215.00 price target on NVIDIA (NASDAQ:NVDA), currently trading near its 52-week high of $184.55, following news of a potential partnership with OpenAI. According to InvestingPro data, NVIDIA maintains an EXCELLENT financial health score, supporting its ambitious expansion plans.

The partnership, outlined in a letter of intent between the companies, would involve deploying 10 gigawatts 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.

NVIDIA’s free cash flow for fiscal year 2026 is projected at approximately $100 billion, making this scale of investment financially feasible for the company.

The move highlights NVIDIA’s pursuit of its AI Factory vision, leveraging both its technological leadership and financial strength to reinforce its position in the artificial intelligence market.

In other recent news, Nvidia has announced a strategic partnership with OpenAI, planning to invest up to $100 billion to deploy at least 10 gigawatts of AI data centers. This partnership is aimed at developing infrastructure for OpenAI’s next-generation AI models, with the first gigawatt expected to go live in the second half of 2026. Following this announcement, several analyst firms have reiterated their ratings on Nvidia. Evercore ISI raised its price target to $225, maintaining an Outperform rating, due to the potential market impact of the OpenAI deal. Rosenblatt also maintained its Buy rating with a $215 price target, highlighting the significance of the partnership. Barclays reiterated an Overweight rating and set a $200 price target, estimating the deal could generate approximately $350 billion in revenue for Nvidia by the end of the decade. DA Davidson echoed a Buy rating with a $210 price target, emphasizing the deployment of Nvidia systems for OpenAI’s future models. These developments underscore the potential financial impact and strategic importance of the Nvidia-OpenAI collaboration.

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