DA Davidson analyst Gil Luria keeps a Buy rating and $210 price target on Nvidia (NVDA) after its announced $100B investment in OpenAI and the companies’ joint letter of intent for OpenAI to deploy at least 10 GW of Nvidia systems for both the training and inference f OpenAI’s future models. The announcement is positive for OpenAI’s ability to ramp, but the firm is concerned that NVDA has become the “investor of last resort”, bailing out OpenAI’s overextended commitments, the analyst tells investors in a research note. NVIDIA has already had to bail out CoreWeave (CRWV) IPO, and while that has worked out well so far – the value of the investment has tripled – the firm prefers to see more traditional investors step up to fund the great data center buildout, DA Davidson added.
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