Nvidia stock rises as Bernstein reiterates Outperform rating

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $225.00 price target on Nvidia (NASDAQ:NVDA) following the company’s strategic partnership announcement with OpenAI. The semiconductor giant, currently trading near its 52-week high with a 71.55% revenue growth over the last twelve months, maintains an EXCELLENT financial health score according to InvestingPro analysis.

The partnership, announced Monday, could involve Nvidia investing up to $100 billion in OpenAI over time as the companies deploy at least 10 gigawatts of datacenter capacity using Nvidia systems. InvestingPro subscribers can access over 20 additional key insights and a comprehensive Pro Research Report about NVDA’s market position and growth potential.

According to Bernstein analyst Stacy A. Rasgon, the first 1 gigawatt of Nvidia systems—likely representing approximately $10 billion of the potential investment—will be deployed and come online in the second half of 2026, leveraging Vera Rubin systems.

Bernstein noted that the news is "likely to be taken positively" for Nvidia as it will support financial performance into 2026 and beyond, with the first deployment not occurring for a year, suggesting that concerns about sustainability don’t present an "imminent threat."

While Broadcom (NASDAQ:AVGO) stock reportedly sold off following the announcement, Bernstein doesn’t view this as negative, suggesting the companies likely target different applications, and maintaining that "AI spending acceleration is probably positive for all players."

In other recent news, Nvidia has been the focus of multiple analyst firms following its potential partnership with OpenAI. This partnership, outlined in a letter of intent, involves deploying 10 gigawatts of Nvidia systems to support OpenAI’s next-generation AI infrastructure. Rosenblatt Securities has reiterated its Buy rating and maintained a $215.00 price target, while DA Davidson also reiterated a Buy rating with a $210.00 target, both citing the OpenAI collaboration. Evercore ISI raised its price target for Nvidia to $225.00, up from $214.00, and maintained an Outperform rating, noting the significant potential of the OpenAI deal. Barclays reiterated its Overweight rating and a $200.00 price target, estimating that the partnership could generate approximately $350 billion in revenue for Nvidia through the decade. Each gigawatt of the AI infrastructure deployment is projected to represent about $35 billion in potential revenue. These developments have sparked increased interest and positive sentiment among analysts regarding Nvidia’s growth prospects.

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