NVIDIA Stock Analysis: NVDA Trades at $176 Amid Bold $100B AI Bets

The past few months have been particularly active for NVIDIA. Several bold decisions and strategic partnerships have shaped its outlook and show how the company is preparing for the future.

One of the biggest announcements is NVIDIA’s plan to invest up to $100 billion to support OpenAI. This investment will help OpenAI build a massive AI infrastructure, with around 10 gigawatts of computing capacity. In return, NVIDIA will receive equity in OpenAI. 

This deal is designed to create a cycle of growth, as OpenAI will continue to purchase NVIDIA chips and systems, which will generate business for the company. The move also strengthens NVIDIA’s role not just as a supplier of hardware but as a central partner in the AI ecosystem.

Another important development is NVIDIA’s decision to invest $5 billion in Intel. This investment will allow the two companies to co-develop custom central processing units, or CPUs, that work alongside NVIDIA GPUs. 

Although this deal does not involve Intel’s foundry business, it represents a deeper collaboration between the world’s leading GPU company and one of the most established CPU makers. Analysts believe this is an effort to secure US leadership in semiconductors and make sure the two technologies work seamlessly together.

NVIDIA has also expanded its presence in China despite rising geopolitical tensions. With restrictions on selling its most advanced AI chips to Chinese companies, NVIDIA has partnered with Alibaba. This partnership will focus on integrating NVIDIA’s robotics, AI simulation, and other physical AI systems into Alibaba Cloud. This way, NVIDIA continues to play a role in China’s AI market, even though direct sales of its most advanced chips are banned.

At the same time, there are challenges in China. The Chinese government has prohibited companies from buying NVIDIA’s RTX Pro 6000D chip, and production of the H20 chip, which was designed specifically for the Chinese market, has been halted. These decisions show how export restrictions and government policies can directly impact NVIDIA’s sales in one of its largest markets.