NVIDIA (NVDA) is Partnering with Australian startup Firmus Technologies Ltd., Reports Bloomberg

NVIDIA Corporation (NASDAQ:NVDA) is one of the Most Promising AI Stocks to Buy Right Now. On October 16, Bloomberg reported that NVIDIA Corporation (NASDAQ:NVDA) is partnering with Australian startup Firmus Technologies Ltd. in a bid to create a massive fleet of renewable energy-powered AI data centers throughout the country. The construction is in progress on 2 data centers in Melbourne and Tasmania for Project Southgate, which is A$4.5 billion ($2.9 billion) undertaking utilising 150 megawatts of power.

The facilities would use NVIDIA Corporation (NASDAQ:NVDA)’s GB300 chips and are anticipated to come online by April, noted Bloomberg. Earlier, in September 2025, OpenAI and NVIDIA Corporation (NASDAQ:NVDA) announced a letter of intent for the landmark strategic partnership. Notably, NVIDIA Corporation (NASDAQ:NVDA) plans to invest up to $100 billion in OpenAI progressively as each gigawatt gets deployed.

Polen Capital, an investment management company, released its Q3 2025 investor letter. Here is what the fund said:

“In early August we initiated positions in both NVIDIA Corporation (NASDAQ:NVDA) and Broadcom, after having not owned either company over the past 2½ years following the initial wave of enthusiasm around Gen AI. While we have long admired both companies, their highly cyclical business models have made it extremely difficult to forecast future earnings growth with any degree of conviction. Given our approach of seeking durable and persistent earnings growth that compounds over long holding periods, our concern in holding either was that we would be forced to endure a punishing downcycle within our typical holding period – there is very little room that in a concentrated portfolio of 20-30 companies. In fact, pre ChatGPT, NVIDIA had two punishing down cycles over the preceding five years.

That is specifically what has occurred for NVIDIA and Broadcom. While the sheer magnitude of demand for AI chips, servers and networking equipment was something that we clearly underappreciated, new incremental data points over the past few months lead us to conclude the current boom in AI chips and related hardware will likely continue for the foreseeable future giving us greater conviction over the trajectory of future earnings for both NVIDIA and Broadcom.

NVIDIA produces the fastest chips that are able to process compute intensive tasks like Gen AI training models extremely efficiently, are very flexible so can be used for any type of workload, and as a result are the chips in highest demand as the hyperscalers build out their Gen AI infrastructure (NVIDIA currently receiving 90c of every dollar spent on AI accelerated semiconductors). Their business has a very strong competitive moat, which is partly about the speed of their chips, but also the entire ecosystem they have built around them (programing language, training models and associated network effects)…” (Click here to read the full text)

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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Disclosure: None. This article is originally published at Insider Monkey.