- NVIDIA stock rose 2% after recent losses, as several other AI-related stocks also saw gains.
- Analysts link Nvidia’s future growth to a possible $100 billion investment in OpenAI, which may lead to increased revenue for Nvidia.
- Nvidia CEO Jensen Huang stated that OpenAI could become a “multi-trillion-dollar” company, highlighting the importance of the partnership.
- Experts warn that a major deal between Nvidia and OpenAI could attract antitrust scrutiny from regulators such as the Department of Justice.
- Analysts from firms like Bernstein and Barclays have raised their price targets for Nvidia stock, reflecting ongoing optimism about the company’s AI position.
Nvidia shares climbed 2% on Monday during trading, rebounding from a 0.5% drop over the past week. Other technology companies that focus on Artificial Intelligence, such as Intel (INTC), Broadcom (AVGO), and AMD, also experienced gains. The increase comes as industry analysts expect Nvidia stock to rise if the company moves ahead with a potential $100 billion investment in OpenAI.
Nvidia CEO Jensen Huang recently said on a podcast that he believes OpenAI could become a “multi-trillion-dollar” company. The possible investment is seen as an important factor that could drive Nvidia’s revenue higher.
Melius Research analyst Ben Reitzes noted that, “While AI is powered by Nvidia, OpenAI could indeed be the most important company in terms of the trillions in value its vision is supporting right now.” Reitzes also stated, “We aren’t very concerned about OpenAI’s ability to raise all this money (into a rate-lowering cycle), we just hope they (and their rivals) get the power they need to keep this going.” According to Reitzes, OpenAI could generate more than $40 billion annually from advertising, which may benefit Nvidia’s business.
However, some legal experts have noted that such a large partnership may raise antitrust questions. Antitrust lawyer Andre Barlow, cited in a Reuters report, said the deal could draw attention from the U.S. Department of Justice. This involvement has the potential to affect investor confidence in Nvidia.
Stock analysts remain positive about Nvidia’s outlook. Bernstein raised its price target to $225, based on the company’s strong position in the AI sector and historical accuracy. Last Thursday, Barclays increased its target to $240, citing Nvidia’s leading role in the ongoing $2 trillion spending on AI infrastructure projects. At the close, Nvidia was trading near its highest level of the past year and above key technical indicators, suggesting continued market support.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Turkey Plans Law Allowing Watchdog to Freeze Crypto Accounts
- Intel Stock Surges as Apple, Nvidia Talks Fuel Bullish Analyst Targets
- Saylor’s MSTR Dilutes 3.2M Shares to Buy $1.1B Bitcoin, Lags BTC
- SEC, CFTC Chiefs Unite: “Crypto Is Job One” for U.S. Regulators
- Robinhood (HOOD) Price Targets Raised Amid 220% YTD Surge
