Bank of America resets Nvidia stock forecast after OpenAI deal

Core Insights - Nvidia has announced a significant $100 billion investment in OpenAI to enhance AI training and inference capabilities, with a focus on deploying over 10 gigawatts of systems starting in the second half of 2026 [1][4]. Investment Overview - The investment is expected to create a substantial sales opportunity for Nvidia, potentially reaching between $300 billion to $500 billion over time [4]. - OpenAI's user base exceeds 700 million weekly active users, indicating a strong market presence that could value the company around $500 billion [2]. Technology and Performance - Nvidia's next-generation AI accelerator, Vera Rubin, is set to outperform its predecessor, Blackwell, by delivering 50 petaflops of FP4 inference, which is more than double the performance of Blackwell [6]. - A full Rubin rack could provide 3.3 times the performance of a comparable Blackwell Ultra rack, showcasing significant advancements in computing power [6]. Financial Structure - The partnership includes a letter of intent for Nvidia to invest in at least 10 gigawatts of systems, with a structured payment plan starting with an initial $10 billion [5][7]. - Nvidia's cash investment will buy non-voting equity in OpenAI, which will use the proceeds to purchase Nvidia's chips and systems [7].