Nvidia stock holds Buy rating as OpenAI plans 10 gigawatt data center

Published 23/09/2025, 13:16
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Investing.com - Benchmark maintained its Buy rating and $220.00 price target on NVIDIA (NASDAQ:NVDA), currently trading near its 52-week high with a 58% return over the past year, following the company’s announcement of a strategic partnership with OpenAI. According to InvestingPro data, NVIDIA maintains an EXCELLENT financial health score, reflecting its strong market position.

The two artificial intelligence leaders signed a letter of intent for a partnership that will see OpenAI deploy at least 10 gigawatts of AI data centers using NVIDIA systems, according to Benchmark analyst Cody Acree.

The planned deployment will include millions of NVIDIA GPUs, the company’s interconnectivity solutions including InfiniBand and Spectrum-X Ethernet, and NVIDIA’s software stack such as CUDA and TensorRT-LLM.

While no complete deployment timeline was specified in the announcement, the companies indicated the first phase would come online in the second half of 2026 using NVIDIA’s Vera Rubin platform.

The agreement represents what Benchmark described as "one of the AI industry’s latest pay-to-play agreements" between the GPU manufacturer and the leading AI research company.

In other recent news, Nvidia has announced a significant partnership with OpenAI, which has garnered attention from several analyst firms. This partnership involves deploying at least 10 gigawatts of Nvidia systems to support OpenAI’s AI infrastructure. Analysts from Bernstein, Rosenblatt Securities, and Evercore ISI have maintained their positive ratings on Nvidia, with price targets set at $225, $215, and $225, respectively. Evercore ISI raised its price target from $214, citing a callback with Nvidia’s CFO regarding the potential revenue implications of the OpenAI deal. Barclays has also reiterated an Overweight rating with a $200 price target, noting that the partnership could translate to approximately $350 billion in revenue for Nvidia over time. The strategic collaboration with OpenAI could see Nvidia investing up to $100 billion as the companies work together on this expansive project. These developments reflect the market’s optimism about Nvidia’s potential growth through this partnership.

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