NVIDIA (NVDA) Price Target Raised to $225 After $100B OpenAI Deal

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks on Market Radar. On September 23, Evercore ISI analyst Mark Lipacis raised the price target on the stock to $225.00 (from $214.00) while maintaining an Outperform rating. The rating affirmation follows the company’s deal with OpenAI.

The two companies are collaborating to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure. Nvidia intends on investing up to $100 billion in OpenAI as the new NVIDIA systems are deployed.

After speaking with Nvidia’s CFO, the firm has come out confident on the stock, stating that the company remains the AI ecosystem play of choice and that Street estimates are too low.

The firm also reiterated Nvidia as its Top Pick. Analysts believe that Wall Street is underestimating demand, and that NVidia is uniquely positioned to handle the scale that OpenAI needs for its infrastructure buildout.

“Post our callback with NVDA’s CFO regarding the OpenAI deal, we came away with further confidence that NVDA remains the AI ecosystem play of choice and that Street estimates are too low – Reiterate NVDA as a top pick. Key takes from the callback: NVDA is the preferred supplier to OpenAI, as OpenAI has underestimated demand for its solution and wants to get ahead of demand going forward, and NVDA is uniquely positioned as the scale solution provider that could help OpenAI with this infrastructure buildout. The deal is for at least 10GW of AI infrastructure, and mgmt. confirmed that historically, NVDA’s TAM was $30bn-$40bn per GW, although going forward it could be higher. The deal would include GPUs, racks, networking and software. The OpenAI deal is additive to what NVDA was expecting before We Estimate $5.5bn in Additional Revs for NVDA in 2HCY26. The company would not give details about the pace and duration of the ramp. We increase our 2H26 revenue estimate by $5.5bn, using Colossus, Prometheus and Project Rainier as benchmarks”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

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