Nvidia to Participate in OpenAI Funding Round
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 192.510
Low
200.00
Averages
264.97
High
352.00
Current: 192.510
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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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