On Monday, chip giant Nvidia’s (NVDA) stock rose about 4% in reaction to the announcement of a strategic partnership with ChatGPT maker OpenAI, under which Nvidia will invest up to $100 billion in the AI company. The two companies will work together to build OpenAI’s infrastructure by using at least 10 gigawatts (GW) of Nvidia systems. Reacting to the deal, top analysts at Bank of America and Rosenblatt reiterated a Buy rating on NVDA stock and gave favorable reviews.
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Top Bank of America Analyst Weighs in on Nvidia-OpenAI Partnership
Bank of America analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $235. The 5-star analyst noted that the partnership includes a letter of intent for Nvidia to be involved in at least 10 GW of systems, starting in the second half of 2026 with the company’s Vera Rubin platform, which he estimates could generate about $300 billion to $500 billion in revenue over time, or roughly a 3x to 5x return on investment (ROI).
Arya also highlighted a key aspect of the deal, in which OpenAI will work with Nvidia as a preferred strategic compute and networking partner. The analyst added that, although no specific share is specified, the deal indicates higher competitive risks for other chip providers, including Broadcom (AVGO) and Advanced Micro Devices (AMD).
However, Arya thinks that “the optics of such large investment in a customer will raise questions” until Nvidia clarifies the accounting treatment for this transaction.
Rosenblatt Analyst Cheers Nvidia’s $100B Investment in OpenAI
Likewise, Rosenblatt analyst Hans Mosesmann reiterated a Buy rating on Nvidia stock with a price target of $215. The 5-star analyst noted that the partnership is mutually beneficial, with Nvidia securing OpenAI’s continued model development on its hardware and software ecosystem, while OpenAI gains access to a massive investment from the chip company to accelerate growth and ensure GPU deliveries.
Mosesmann noted that Nvidia’s free cash flow estimate for Fiscal 2026 is around $100 billion, making the scale of the company’s investment in OpenAI feasible. He stated that the deal reflects Nvidia’s “aggressive pursuit of its AI Factory vision,” capitalizing not only on its technological leadership but also on its financial strength to bolster its dominance in the AI market.
However, Mosesmann thinks that certain key questions remain unanswered. These include the time required to deploy 10 GW of infrastructure and the level of ROI that NVIDIA can expect.
Is NVDA Stock a Good Buy Right Now?
Wall Street has a Strong Buy consensus rating on Nvidia stock based on 37 Buys, two Holds, and one Sell recommendation. The average NVDA stock price target of $211.97 indicates 15.5% upside potential from current levels. NVDA stock has risen 37% year-to-date.
