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Nvidia (NVDA) Seen as Key AI Beneficiary Despite Risks Tied to OpenAI Funding

Sat, September 27, 2025 at 5:39 PM CDT 2 min read

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Every Investor Should Watch. On September 23, DA Davidson analyst Gil Luria reiterated a Buy rating and $210.00 price target on the stock. The rating affirmation follows Nvidia’s announcement of a $100B equity investment in OpenAI.

The two companies have signed a letter of intent to deploy at least 1o GW of Nvidia systems for the training and inference of OpenAI’s future models.

While the announcement reflects OpenAI’s ability to ramp, DA Davidson is concerned that Nvidia is becoming the “investor of last resort” to cover OpenAI’s heavy commitments.

They noted how the chipmaker already had to bail out CoreWeave IPO, and even though that has worked out and the value of the investment has tripled, it prefers more traditional investors stepping up to fund the great data center buildout.

“Today, both NVIDIA and OpenAI have jointly announced a letter of intent for OpenAI to deploy at least 10 GW of NVIDIA systems for both the training and inference of OpenAI’s future models. In addition to deployment of these systems, NVIDIA plans to invest up to $100B in OpenAI progressively as each gigawatt is deployed. While the announcement is positive for OpenAI’s ability to ramp, we are concerned NVDA has become the “investor of last resort”, bailing out OpenAI’s overextended commitments. We maintain our BUY rating and $210 price target.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

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