Nvidia Stock Jumps On $100 Billion OpenAI Strategic Partnership

Core Viewpoint - Nvidia has announced a strategic partnership with OpenAI, planning to invest up to $100 billion to deploy 10 gigawatts of AI data centers powered by Nvidia processors, marking a significant advancement in AI infrastructure [1][3]. Investment and Financial Impact - Nvidia will progressively invest in OpenAI as each gigawatt of capacity is deployed, with the first gigawatt expected to be operational in the second half of 2026 [2]. - The partnership is projected to generate at least $260 billion in revenue and nearly $130 billion in net income for Nvidia, with a margin of approximately 50% [6]. - Barclays analyst estimates the revenue potential for Nvidia could reach at least $350 billion [6]. Market Performance - Nvidia stock rose 4% to $183.61, reaching an intraday high of $184.55, which is close to a buy point of 184.48 [4]. - The stock is rated as a 'Strong Buy' following the announcement, with price targets raised from $210 to $225 [6]. Strategic Collaboration - The partnership is currently formalized as a letter of intent, with expectations to finalize details soon [3]. - OpenAI will collaborate with Nvidia as a preferred strategic partner for its AI factory growth, aiming to co-optimize development roadmaps for both companies [3]. Historical Context - Nvidia's CEO highlighted that this partnership represents the largest AI infrastructure project in history, equating the 10-gigawatt project to 4 to 5 million graphics processing units, which is double the shipment from the previous year [5].