Why Analysts See Nvidia's (NVDA) $100B OpenAI Bet as a Win for GPU Leadership

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks in the Spotlight This Week. On September 24, Mizuho analyst Vijay Rakesh reiterated an Outperform rating and $205.00 price target on the stock. The rating follows Nvidia’s announcement of a $100billion equity investment in OpenAI.

The firm noted how Nvidia’s equity investment in OpenAI to fund up to 10GW of AI data center capacity reinforces its GPU and networking dominance.

OpenAI could receive the initial $10B in the next few months, with deployments expected in 2H26E.

“NVDA announced a $100B equity investment into OpenAI to fund up to ~10GW of AI data center capacity, starting with the Vera Rubin NVL racks we expect to launch in ~2H26E. We believe: 1) cementing NVDA GPU/networking (NVLink) LLM/AI TRAINING dominance while securing demand outlook for 2026/27E with its largest customer, 2) potential for first deployments to being in 2H26E with VR200 NVL144 shipments, 3) OpenAI to potentially receive initial $10B from NVDA in next few months after official agreement is reached with remaining $90B disbursed as OpenAI ramps new capacity, and 4) NVDA had previously noted it costs ~$50B per GW of AI DC capacity, with ~$35B dedicated to NVDA infrastructure.

The firm reiterated Outperform as it views the “OpenAI deal as NVDA maintaining its key leadership position in the merchant GPU market as its largest customer continues to expand.”

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

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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