Nvidia to Participate in OpenAI Funding Round
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy NVDA?
Source: seekingalpha
- Clear Investment Intent: Nvidia CEO Jensen Huang stated that the company will “absolutely” participate in Microsoft-backed OpenAI's current funding round, with the potential investment being the largest in Nvidia's history, indicating strong confidence in the AI sector.
- Massive Funding Scale: OpenAI is seeking up to $100 billion in new capital, while Amazon is reportedly in talks to invest up to $50 billion, reflecting the market's enthusiasm and recognition of potential returns in artificial intelligence technology, which could drive stock prices of related companies higher.
- Conservative Investment Amount: Although Huang mentioned Nvidia's participation, he emphasized that the investment “will be nothing like” $100 billion, showcasing the company's cautious approach to risk, which may influence market expectations regarding its investment decisions.
- Uncertain Deal Progress: Reports indicate that Nvidia's plans for a $100 billion deal with OpenAI, signed in September, have stalled due to doubts expressed by some insiders about the agreement, potentially impacting Nvidia's strategic positioning in the AI landscape.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surging Order Forecast: CEO Jensen Huang indicated that Nvidia expects approximately $1 trillion in purchase orders for its Blackwell and Vera Rubin chips by 2027, doubling last year's forecast of $500 billion, signaling sustained strong demand for AI chips.
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- Rising Demand: Since the end of February, following U.S. and Israeli military actions against Iran, defense tech startups have reported a significant uptick in demand from Department of Defense customers, with many clients offering to buy out capacity or requesting increased production, indicating a pressing market need for new technologies.
- Opportunities in the Middle East: As conflicts escalate, defense tech startups in Europe and the U.S. are accelerating commercial discussions with Middle Eastern governments, particularly as interest from Gulf states skyrockets, highlighting urgent needs for defenses against drone and missile attacks.
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- Surging Order Forecast: CEO Jensen Huang anticipates approximately $1 trillion in purchase orders for Blackwell and Vera Rubin chips by 2027, doubling last year's forecast of $500 billion, indicating that demand for AI chips remains strong.
- Optimistic Future Outlook: Nvidia projects first-quarter revenue for fiscal year 2027 to reach $78 billion, representing an almost 77% increase compared to the same period last year, reflecting the company's ongoing growth potential in AI applications.
- High Market Valuation: Despite Nvidia's forward P/E ratio of 30, significantly above the average of 20.9 for the tech sector, its outstanding financial results and technological advantages justify this premium, continuing to attract investor interest.
See More
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- Accelerated AI Partnerships: Nvidia's agreement with Nokia and investment in the telecom giant aims to develop AI for 6G, while collaboration with Marvell Technology integrates their tech into Nvidia's ecosystem, solidifying its leadership in the AI sector.
- Stock Price Potential: Trading at only 21x forward earnings estimates, with analysts predicting a 77% revenue surge this quarter, Nvidia is attracting both growth and value investors, likely driving the stock price higher.
- Market Sentiment Shift: Despite a 6% decline in Q1, ongoing AI spending and market demand may restore investor confidence in Nvidia, with expectations for a significant rebound in stock price during Q2.
See More
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- Stock Volatility: Nvidia's stock has surged over 500% in the past three years, yet recently declined about 6% due to concerns over AI spending and the economic environment, indicating a shift in market sentiment that could impact investor confidence.
- China Market Recovery: The U.S. has permitted Nvidia to export its H200 chips to China, with revenue expected to be recorded in the second quarter; previously, China accounted for 13% of Nvidia's total revenue, making this a significant growth driver.
- AI Partnership Expansion: Nvidia has signed an agreement with Nokia and invested in the telecom giant to develop AI technology for the transition from 5G to 6G, while also partnering with Marvell Technology to enhance flexibility within its AI ecosystem, solidifying its leadership in the AI sector.
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